Summary
UK government borrowing costs dropped slightly after rising due to the chancellor's emotional speech. The prime minister showed support for the chancellor, which seemed to reassure financial markets. The value of the pound also improved a bit but hasn't fully recovered.
Key Facts
- The yield on UK 10-year government bonds fell to 4.53% from 4.61%.
- The fall in borrowing costs happened after the prime minister supported the chancellor.
- The pound increased in value to $1.3668 but hasn't regained all its lost value.
- An analyst suggested markets support the chancellor due to concerns about potential lack of fiscal discipline if she leaves.
- Financial market reactions might be affecting the chancellor's career positively.
- Mohamed El-Erian, a financial expert, warned that markets are still tense and may not return to the previous state quickly.
