Financial jitters over ‘watertight’ Brexit deal

Jitters over the supposedly “watertight” deal struck between the EU and UK last week over the next phase of the Brexit talks weighed on sterling and UK gilt yields yesterday, showing that securing a final agreement is still far from certain, analysts said, writes Eamon Quinn.

Jitters over the supposedly “watertight” deal struck between the EU and UK last week over the next phase of the Brexit talks weighed on sterling and UK gilt yields yesterday, showing that securing a final agreement is still far from certain, analysts said, writes Eamon Quinn.

Sterling fell at one stage by 0.5% against the euro, to 88.3p and UK bonds gained on safe-haven buying — which drove British 10-year yields eight basis points lower to 1.2% — as cracks began to show in the Brexit compromise agreed upon between UK prime minister Theresa May’s government and the EU.