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David Milliken

@david_milliken

Sep 23

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Hard to capture the scale of the sell-off in UK bond markets since Kwasi Kwarteng's statement. Five-year gilt yields have risen almost half a percentage point to a peak of 4.047% - the biggest one-day rise since at least 1991, by my calculations. New borrowing now far costlier.

Sadly almost a daily event now, but sterling has hit a new low against the U.S. dollar below $1.11 - its weakest since March 1985. Versus the euro, sterling is down heavily on the day at just above €1.13, the lowest since February 2021.

Do check out more of Reuters' reporting on Kwarteng's statement and the reaction here twitter.com/david_milliken…

David Milliken

@david_milliken

Sep 23View on Twitter

Britain bets all on historic tax cuts and borrowing, investors take fright - by @Andy Bruce and me reuters.com/markets/europe…

New British finance minister Kwasi Kwarteng will detail close to 200 billion pounds ($225 billion) of tax cuts, energy subsidies and planning reforms on Friday, as part of Prime Minister Liz Truss's...

reuters.com/markets/europe…

New UK finance minister Kwarteng seeks end to 'cycle of stagnation'

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📉 Regret to update that sterling is now below $1.09 - again, a level last seen in 1985. 🏦 Five-year UK bond yields (which move the opposite way to prices) jumped 50 basis points to 4.06%, representing the biggest sell-off since 1991. On a normal day they'd move less than 5...

David Milliken

@david_milliken

Reuters economics reporter covering the Bank of England, HM Treasury, bond markets and housing. Once upon a time in 🇩🇪 and 🇧🇪. DMs open. RTs ≠ my view.

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