Gold hits highest level in three months as traders worry about US inflation and bond market jitters – business live
Summary
Gold prices have reached their highest level in three months due to concerns about US inflation and instability in the bond market. Meanwhile, the UK government sold seven-year bonds at yields not seen since 2002, indicating higher borrowing costs. In the US, car parts maker First Brands Group went into liquidation after a bankruptcy court rejected its restructuring plan.Key Facts
- Gold prices rose to a three-month high because traders worry about US inflation and bond market problems.
- The UK government sold £3.9 billion in seven-year bonds at a yield of 4.761%, the highest since 2002.
- The high bond yields show the UK government’s borrowing costs are increasing.
- The US Treasury Department recently intervened to calm the US bond market amid global bond sell-offs.
- First Brands Group, a US car parts maker, has entered liquidation after a bankruptcy court rejected its plan to restructure debt.
- The company tried to pay creditors by suing insiders, but the court said the plan broke bankruptcy laws and was unworkable.
- First Brands sold some parts of its business for much less than its debt and failed to find a buyer for the entire company.
- The US bankruptcy judge said the company’s litigation plan to raise money for creditors was unlikely to succeed.
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