Market Briefing: Markets Stabilize After Yesterday’s Whiplash-Inducing Session
Markets are calming, but remain distinctly depressed after yesterday’s extraordinarily-turbulent session. Ten-year British gilts were yielding more than 4.5 percent and their US equivalents were paying 4 percent before the Bank of England stepped in to “carry out temporary purchases” of long-term bonds, sending rates tumbling back to 4.2 and 3.7 percent, respectively. Trading in the pound remains highly volatile, with the cable interbank rate approaching 1.09 before tumbling this morning when Prime Minister Liz Truss doubled down on her government’s policies in a series of remarkably ill-informed interviews with local BBC radio stations. Asked if she would consider reversing...