LONDON — Sterling
rose against the dollar
on Monday alongside government borrowing prices as U.K. Finance
The yields on long-dated U.K. government bonds, known as gilts, fell following an emergency statement delivered by Hunt.
The yield on 20-year gilts was down 45 basis points , dropping to 4.444%. 30-year index-linked gilt yields were also down 48 basis points to 4.369%. 10-year
gilt yields fell 41 basis points to trade around 3.972%. Yields on 5-year and 2-year gilts also slid Monday. Yields move inversely to prices
The pound was up 2.3% to $1.1428 by 4:45 p.m. London time, extending gains after rising for much of the morning session.
The market moves follow a dramatic day in British politics on Friday, which included big fiscal U-turns from Prime Minister Liz Truss and the sacking of Finance Minister Kwasi Kwarteng
The major U-turn included scrapping the cut in the lowest rate of income tax from 20% to 19%, as well as cuts to dividend tax rates
Markets weren’t reassured by the move though, and the pound fell by around 1.1% against the dollar following Truss’s speech, trading at around $1.1205