Rolling coverage of the latest economic and financial news
Signs of calm in the bond market will be warmly welcomed in the UK Treasury.
The jump in Britain’s bond yields risks widening the ‘black hole’ which Rachel Reeves is expected to fill in the autumn budget scheduled for 26 November.
That could mean either spending cuts or tax rises to persuade the Office for Budget Responsibility that the chancellor is keeping within the fiscal rules.
Simon French, chief economist at Panmure Liberum, arugues that UK fiscal and monetary policymakers must demonstrate “a firm hand on the tiller” in the next few weeks, to help sooth UK gilt yields.
