UK homeowners renewing fixed-rate deals now face annual cost rises of roughly £1,200-£1,340 ($1,619-$1,808) after the International Monetary Fund (IMF) warned that the collapse of the safety premium on US Treasury bonds is pushing global borrowing costs higher, with UK gilt yields moving in lockstep.
The warning, delivered in the Fund's April 2026 Fiscal Monitor released on April 15, states that swelling US debt issuance is eroding the premium investors have traditionally paid for the perceived safety and liquidity of Treasuries. The so-called 'convenience yield', a measure of that international safe-haven discount, has recently turned negative.
