Truss handed huge lifeline as markets give verdict on new Chancellor

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Liz Truss has been handed a massive lifeline in the fight to save her job after 30-year gilt yields plunged as the markets gave their verdict on new Chancellor Jeremy Hunt. Sky News Economics Editor Ed Conway has shared a UK Gilts 30 Year Index chart on Twitter showing the sharp fall. He has written alongside this: “30-year gilt yields drop sharply this morning. Will be an enormous relief in Downing St.” This means people are buying as yield and price are inverse to each other

The pound has also bounced back this morning in anticipation of a of a key statement from newly appointed Chancellor Jeremy Hunt who faces the big job of repairing the fallout from the Government’s disastrous mini-budget.

Sterling soared by as much as 1.1 percent to hit $1.1294 against the US dollar soon after the Treasury revealed that Mr Hunt would deliver key parts of a medium-term plan later today in support of “fiscal sustainability”.

The British currency had plummeted to a record low against the US dollar at the end of last month after then Chancellor Kwasi Kwarteng unveiled the biggest programme of tax cuts for 50 years.

The mini-budget on September 23 also prompted a surge in borrowing costs – leading the Bank of England to make an unprecedented emergency intervention.

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