UK Bonds Extend Slide After Truss Defends Fiscal Plans

UK bonds extended losses after Prime Minister Liz Truss defended her new government’s giant fiscal package of unfunded tax cuts, which have tipped markets into chaos.

The yield on the 10-year gilt rose as much as 21 basis points to 4.22% after she started speaking in a radio interview on Thursday morning.

The move undid part of a massive rally triggered Wednesday, when the Bank of England announced it would start buying long-dated government bonds and delay reducing its gilts portfolio to help stabilize the market.

To contact the reporter on this story:
Alice Gledhill in London at agledhill@bloomberg.net ...