Wall Street

Analysis-UK bonds and pound at centre of storm as tax shock hammers confidence

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Reuters UK

By David Milliken, Dhara Ranasinghe and Tommy Wilkes LONDON (Reuters) – Britain’s bond market suffered its biggest daily fall in decades on Friday and is expected to slump further, as investors choked on the prospect of hundreds of billions of pounds in extra borrowing to fund tax cuts and energy bills. Finance minister Kwasi Kwarteng’s plans will require an extra 72 billion pounds ($79 billion) of government borrowing over the next six months alone, and – a particular concern for investors – cement permanent tax cuts costing 45 billion pounds a year. The market response was brutal, not just a…

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