UK Bonds Extend Slide After Truss Defends Fiscal Plans
NORTHFLEET, ENGLAND - SEPTEMBER 23: UK Prime Minister Liz Truss visit Berkeley Modular, on September 23, 2022 in Northfleet, England. The Chancellor has released its growth plan of some 30 measures including tax cuts and an energy price cap for businesses which comes at a time when the UK faces a cost-of-living crisis, recession, soaring inflation and climbing interest rates. (Dylan Martinez - WPA Pool/Getty Images) Photographer: WPA Pool/Getty Images Europe
, Photographer: WPA Pool/Getty Images Europe
Alice Gledhill, Bloomberg News
(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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