UK bonds keep the calm ahead of Hunt's statement

30-year gilt yields are down 39 bps to 4.39% on the day as we wait to hear from UK finance minster, Jeremy Hunt, and his emergency statement.

The expectation is that we will see a massive U-turn in the mini-budget but the latest word on the street is suggesting that he will also announce that the energy price guarantee will only remain universal until April next year. Thereafter, the policy will become targeted and capped. This was something the BOE feared would add to inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term pressures, so it is likely that we are seeing the government work more closely with the central bank after the weekend meeting.

BREAKING:

Jeremy Hunt is poised to announce that the energy price guarantee will only remain universal *until April*

It will then become targeted and capped

Govt helped by falling gas prices@MrHarryCole first highlighted changes this morning

— Steven Swinford (@Steven_Swinford) October 17, 2022

Let's see if we are going to get another round of buy the rumour, sell the fact play in gilts.