(Bloomberg) --

UK bonds extended losses after Prime Minister Liz Truss defended her new government’s giant fiscal package of unfunded tax cuts, which have tipped markets into chaos.

The yield on the 10-year gilt rose as much as 21 basis points to 4.22% after she started speaking in a radio interview on Thursday morning. 

The move undid part of a massive rally triggered Wednesday, when the Bank of England announced it would start buying long-dated government bonds and delay reducing its gilts portfolio to help stabilize the market. 

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