“A further rally now likely requires the departure of the PM,” Citi analysts including Jamie Searle wrote in a note to clients. “The UK now faces a period of heightened market uncertainty without a clear policy strategy.”
Yields had climbed even after Kwarteng departed and Truss scrapped her plan to freeze corporation tax next year. UK bond futures then extended losses after Bloomberg reported Truss expects her new Chancellor of the Exchequer, Jeremy Hunt, to commit to carrying out no further U-turns on her economic plans.
