U.K. Budget Experiment Tests Markets

Sep. 29, 2022 1:25 AM ETEWU, FKU, EWUS, HEWU, FLGB, FXB, GBBEF1 Comment

Summary

  • Grave new concerns have taken over the headlines, triggering a sell-off in U.K. assets.
  • Gilt yields are skyrocketing, and the pound is plummeting, even touching a record low against the U.S. dollar (USD).
  • One major culprit is the unveiling of the government’s “mini” budget, which is anything but mini.

British flag waving on pole with clipping path

claylib/E+ via Getty Images

By William Vaughan and Katie Klingensmith

There has been quite a stir going on in the U.K. For the past several weeks, the world was transfixed by the historic funeral proceedings for Queen Elizabeth II. Now, grave new concerns

UK 5-year Gilts and GBP/USD spot exchange rate

UK 5-year gilt yields

This article was written by

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