Matt Brennan, head of fixed income research and senior fund manager at Brown Shipley, said a weak government would leave Britain in a poor position to negotiate Brexit.
“This would in no doubt leave the UK in a much worse position for Brexit negotiations, and this is starting to be reflected in both the currency and bond markets.”
The 10-year gilt moved below 1% briefly following the survey before settling at 1.01%.
However, markets appeared unaffected with the S&P500 and FTSE 100 hovering just below all-time highs.
