UK gilt yields reach new multiyear records
The yields on the United Kingdom government bonds (gilts) reached new multiyear highs on Tuesday after the Sun reported that Chancellor of the Exchequer Kwasi Kwarteng (pictured) is holding a meeting with fellow Conservative Members of Parliament. In the call, Kwarteng dismissed any possibility of a repeat of "The Barber Boom," a brief period of growth attributed to former Tory chancellor Anthony Barber's 1972 budget that was followed by a wage-price spiral, high inflation and pound depreciation.
Meanwhile, Sky News reported that Prime Minister Liz Truss "had to be convinced" by Kwarteng to release a government statement yesterday that said that Downing Street will be providing further details about its latest economic package on November 23 in an attempt to "calm the markets."
The return on the 30-year gilt increased by 4.8 basis points to 5.03% at 6:19 pm CET, moments after hitting 5.063%, the highest level in two decades. The yield on the 10-year gilt rose by 1.2 basis points to 4.516% at 6:22 pm CET, shortly after reaching a 14-year high of 4.541%.