British government bonds and the pound extended gains on Monday after new finance minister Jeremy Hunt said the government would reverse almost all of the tax changes announced in Prime Minister Liz Truss's economic growth plan three weeks ago.
UK long-dated gilt yields dropped further, as Hunt spoke with UK 30-year gilt down around 40 basis points to 4.382%, heading for its second-biggest daily drop on record, and the 20-year extending declines, down around 40 bps to 4.464%. The pound was last up 1.2% against the dollar at $1.1301 having had been up just under 1% before the announcement, which had been expected to include a reversal of some of the measures.
Britain's main share benchmarks held their gains, with the FTSE 100 (.FTSE) up 0.6%.
