It’s been a roller coaster ride for gilts and sterling since the mini-Budget
The yield on UK government bonds, or gilts, jumped after Liz Truss and Kwasi Kwarteng
unveiled sweeping tax cut, indicating investors were worried about increased borrowing.
Meanwhile the pound plunged to a record low. The Bank of England sought to steady the market
but the ‘salami slice’ approach failed to really assuage investor concerns and by Oct 17
th Kwarteng was out and new chancellor Jeremy Hunt had ditched virtually all of the
mini-Budget. It was a volatile period in the markets but Finalto was able to maintain good,
sustainable liquidity throughout. Where next? Does the Bank of England press ahead with gilt
sales at the end of October, potentially sending yields up again? Does the Chancellor have
deep spending cuts planned – cuts that could balance the books but hurt growth? Volatility
isn’t going away. 
Group