Institutions: If there is insufficient demand for UK government bond auctions, the pound may fall again.

On January 15th, Jinshi Data, Matthew Ryan of Ebury, said in a report that if demand for the auction of 10-year British government bonds is weak, the pound may fall again, and the yield on British government bonds may rise. He said that only when there is sufficient interest in buying British government bonds will the government's economic plan work. Lack of interest will lead to another drop in the pound and a rise in the yield, as the market prepares for the possibility of the UK cutting spending and/or further increasing taxes to fill the public fiscal gap. The pound is the worst performing currency of the G10 countries so far in 2025, as investors lose confidence in the government's control of public finances and its rise plan.