Pound and gilts hold up
THE pound and gilts were left unmoved by Rishi Sunak’s Winter Plan, while stocks were more preoccupied by wider global economic concerns yesterday.
Sterling traded within a narrow range, ending 0.1pc higher at $1.28.
Seema Shah, at Principal Global Investors, said Mr Sunak’s plan “will only stem the bleeding for so long”, and that worries over the UK economy are likely to put further pressure on sterling as Brexit negotiations near a climax.
On the bond markets, the story was similar: yields barely budged, meaning investors are no more concerned about the riskiness of UK government debt than before measures were announced.
Nikesh Patel, at Kempen Capital Management, said the lack of movement was testament to markets’ faith in the BoE’s appetite for bond buying.