The post-budget gilt market trauma has not stopped. Long-term borrowing costs have this morning risen to their highest level since 1998. 30-year gilt yields climbed three basis points to 5.21%. They now sit at 5.274%. They were at 4.79% the day before the budget. Investors are pricing in worries over Labour’s expanding debt and reduced scope for interest rate cuts…
Highest 30-year yield under Liz Truss was 5.06%. Meanwhile closely-watched 10-year gilts have jumped back up to a meaningfully high 4.63%. Reminder: the Truss spike peaked at 3.47% the day after Kwasi’s budget…
UPDATE: Downing Street claims in response that “we will not repeat the budget like we had again.” Doesn’t fill you with confidence…
Meanwhile shadow Business and Trade secretary Andrew Griffith says the “cost of this will be paid by businesses and households in higher interest rates and it comes when firms are already reeling from Labour’s Jobs Tax, biz rates rise, and higher costs from the union-inspired Employment Bill.” Four budgets to go…
Sarah Pochin at Reform Scotland’s manifesto launch event: “I really wanted to come on in a Reform tartan burka, but apparently I wasn’t allowed… One day let’s do one of these events not live-streamed. We’ll do all the naughty stuff…”