Gilt yields start rising again after Truss only reverses on corporate tax cuts

Gilt yields have climbed on Friday, as the Bank of England winds down its temporary bond purchase program, and U.K. Prime Minister Liz Truss only reversed corporate tax cuts. “The vast swings in markets following the announcement suggests that the retracement of £18bn from the unfunded tax burden through reinstating the rise in corporation tax in April may not be enough,” said analysts at Investec Securities. The yield on the 30-year gilt TMBMKGB-30Y, 4.851% backed up by 23 basis points and the 10-year gilt rose 16 basis points.