Truss and Treasury Secretary Fail to Reassure Markets as Bond Yields Rise, Stocks Tumble and Pound Slides – Business Live

THE GUARDIAN: Prime minister and Chris Philp fail to restore investor confidence in series of interviews, as government bond yields rise and stock markets tumble

The prime minister, Liz Truss, and the Treasury’s no 2, Chris Philp, have both done a round of broadcast interviews this morning – but their comments appear to have done little to reassure markets.

Government bond yields are rising again, the stock market has tumbled and the pound is sliding. Sterling is now worth $1.0789, a 0.9% drop on the day.

The FTSE 100 and FTSE 250 indices have lost 1.8% and 2.3% respectively this morning. Germany’s Dax has dropped 1.9%, France’s CAC has slid 1.8% and Italy’s FTSE MiB fell 1.1%.

Despite a barrage of criticism, from the International Monetary Trust and the former Bank of England governor Mark Carney, the government is refusing to perform a U-turn on the package of £45bn of unfunded tax cuts aimed at the wealthy it announced on Friday. There is also no sign at the moment that the fiscal policy statement planned for 23 November could be brought forward.

Truss said this morning: “I have to do what I believe is right for the country and what is going to help move our country forward.” » | Julia Kollewe | Thursday, September 29, 2022

UK Bonds Slump after Pound Plunges to Record Low against Dollar – Business Live

THE GUARDIAN: Economists suggest Bank of England may need an emergency interest rate hike, as gilts slide and sterling slumps to a record low against the US dollar

Speculation of an emergency Bank of England rate hike is giving the pound some support, agrees Matthew Ryan, head of market strategy at global financial services firm Ebury » | Graeme Wearden | Monday, September 26, 2022

Pound hits all-time low against dollar after mini-budget rocks markets: Odds of sterling hitting parity with dollar jump, as analysts say UK bond market ‘getting smoked’ by giveaway »