Pound plunges below $1.11, FTSE 100 slides and UK bonds tumble as mini-budget spooks markets – business live

LIVE – Updated at 13:29 Sterling has tumbled by 2 cents to 37-year low, and UK gilt yields are surging, after Kwasi Kwarteng announced huge unfunded tax

cuts.   13:29 The cost of insuring Britain’s debt against a default has risen to its highest level since mid-2020 as concerns mounted about the government’s

plans to slash taxes and ramp up spending, Reuters reports. Here’s the details: S&P global market intelligence data showed 5-year credit default swaps

(CDS) - derivative instruments that debt investors typically use to hedge risk or bet against something - jumped 3.5 basis points to 34.5 points. Such a large move is

unusual for a G7 economy and it took the CDS level to its highest since mid-2020, when global markets were still in the most volatile stage of the Covid-19 crisis.

Cost of insuring UK government debt against default jumps This is sooooo EM pic.twitter.com/TqhcElU10W— marc jones (@marcjonesrtrs) September 23, 2022

As the UK issues its own currency, it can’t ever be forced to default on its debt, though. Bond market 'completely spooked' by Kwarteng 13:12 The bond market

is ‘completely spooked’ by Kwasi Kwarteng’s mini-budget. So warns Toby Nangle, former global head of asset allocation at Columbia Threadneedle. He has shown how

today’s surge in five-year gilt yields (as bond prices have slumped) is worse than in any crisis since 1993. Daily changes in 5yr fixed rate Gilt yields since

1993. Nothing in the LTCM, Global Financial Crisis, 9/11, Covid, QE compares to today. pic.twitter.com/CC1HR1NiYi