The early signs are that the financial markets have been appeased by the government’s October 17 decision to reverse two-thirds of its September mini-budget tax cuts.
Yields on gilts – which represent long-term borrowing costs for the government and became something of a financial weather vane during the panic – saw one of the biggest daily drops on record immediately after the most recent U-turn on October 17. Yields have remained relatively low since then but are still jittery, due to uncertainty over whether the Bank of England will soon start selling gilts as a way to control inflation.
