Government borrowing costs are back to where they were before Kwasi Kwarteng’s disastrous mini-budget
Government borrowing costs are firmly back to where they were before Kwasi Kwarteng’s disastrous mini-budget.
The yield on the 30-year gilt bond, which is how much interest investors demand to lend to the government, fell to 3.68 percent, a level not seen since Sept. 22.
That’s down from peaks of more than 5 percent on Sept. 28 and Oct. 12, when investors were worried about how much the then-chancellor’s unreasonable tax cuts would cost.
Upset: The yield on 30-year gilts fell to 3.68%, a level not seen since September 22 after former chancellor Kwasi Kwarteng’s disastrous mini-budget.
The yield of gold-plated real estate indirectly affects the value of the mortgage. The interest rate on the average fixed-rate mortgage has jumped more than 6 per cent since the mini-budget. A year ago, they were slightly more than 2 percent.
Yields have been falling since Liz Truss resigned on October 20.
Further slides after Rishi Sunak became prime minister on Monday showed investors’ confidence in the former chancellor.
Josh Mahoney, senior market analyst at trading platform IG Group, said Sunak’s appointment “removed the markets from further uncertainty”.
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