UK bond yields fall further after tax cut U-turn
Reuters
Published Oct 03, 2022 13:58
Updated Oct 03, 2022 14:13
LONDON (Reuters) - Yields on British government bonds fell sharply on Monday led by shorter-dated debt after Prime Minister Liz Trussand finance minister Kwasi Kwarteng back-tracked on part of their controversial tax-cutting plan.
The yield on two-year gilts, which are sensitive to expectations about interest rates, was down about 25 basis points on the day at 1250 GMT after touching a session low of 4.006%.
But that was still about half a percentage point higher than the yield at the close of trading on Sept. 22, the day before Kwarteng announced his "mini-budget" which raised fears about inflation pressures and higher Bank of England interest rates.
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Written By: Reuters
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