Market Perspectives August 2026: The Rising Price of Borrowing, and Bond Investors Losing Patience
In this month's update, Jonathan Burden reflects on a month in which the cost of borrowing moved to the centre of the picture - for governments, companies, and investors alike - alongside a bumper quarter of profits for the world's largest oil companies and a fresh flare-up in trade tensions between the US and Canada.
Jonathan examines the global repricing taking place in government bonds, with investors demanding the highest yields in years - in some cases decades - to lend to major economies, and what this shift away from cheap, price-insensitive borrowing could mean for governments, mortgage holders, and savers alike.
Looking ahead to the new Chancellor's first Budget on 28 October, Jonathan reflects on last year's heavily trailed Budget and offers a note of caution around acting on speculation and leaks in the run-up to a fiscal statement, rather than on the detail of the policies themselves.
On energy, the article looks at the record quarter posted by the major Western oil companies amid ongoing Middle East disruption, and the impact of the FTSE 100's energy weighting during a period of higher oil prices, while noting that such exceptional results are unlikely to represent a lasting trend.
Alongside a review of current market conditions - including renewed questions over technology and AI-linked valuations, and gold's climb to near record highs amid ongoing uncertainty - the article looks ahead to key dates in September and beyond, and returns to a theme central to Jonathan's commentary: the role diversification has historically played during periods of market uncertainty.
This newsletter is intended for general information only and should not be considered personal financial advice. If you would like advice based on your own circumstances, please speak to your dedicated financial planner.
Read the August 2026 Newsletter.
