UK bonds sold off last night after investors were left unconvinced by Liz Truss's attempt to undo the damage of her government's mini-Budget. The sell-off came just as the Bank of England ended its £65bn intervention that was designed to end markets chaos. Earlier in the day, bond markets had been rallying in anticipation of the U-turn. Reversing corporation tax and a plan to scrap the 45p top rate of income tax still leaves the Government with £25billion of unfunded tax cuts left over from the £45bn originally touted in the mini-Budget. James Athey, investment director at Abrdn, said there had been a 'small sigh of relief in UK assets over the past 24 hours but added: 'The good news for the gilt [UK bond] market is probably already over.'

Source: Daily Mail October 15, 2022 00:11 UTC