It remained a half-cent higher after the confirmation that she would be leaving office.
The yield on 30-year gilts fell back to 3.8%, continuing its recovery since the post-mini-budget highs of about 5% that prompted intervention by the Bank of England. As the afternoon progressed, the percentage increased to Thursday morning’s 3.9%.
It will not be Mr. Hunt, since he has ruled himself out, leaving him free to continue preparations for the government’s new medium-term fiscal plan announcement on Halloween.
There will be apprehension as to whether its path will be altered or perhaps postponed to allow the incoming Tory leader to establish themselves.
There is no indication that the statement would be delayed, as the replacement is expected to be in place by October 31.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, stated the following regarding the market movements: “Sterling is highly sensitive to economic policy uncertainty, and even though the ship Britannia will remain largely rudderless with a successor still to be chosen, the future is marginally brighter for investors without her at the helm.
“Ten-year gilt yields fell further today as rumors about her resignation increased, a sign of tacit support from bond vigilantes who punished the United Kingdom by abandoning its government’s debt as concerns about fiscal responsibility accelerated.”
The business community hoped for a more stable future.
“They will need to present a viable fiscal strategy for the medium term and a plan for the long-term growth of our economy as soon as possible.”