New British finance minister on Monday, two weeks earlier than scheduled.
to save her premiership after a Sept. 23 package of unfunded tax cuts hit sterling, sent borrowing costs surging and forced the Bank of England to intervene.Register now for FREE unlimited access to Reuters.coma sharp sell-off in Britain's 2.1 trillion pound government bond market that threatened to wreak havoc in the pension industry and increase recession risks.
liability-driven investment* LDI helps pension funds use derivatives to "match" assets and liabilities to avert risks of shortfalls in payouts, but the soaring interest rates have triggered emergency collateral calls for those funds to cover the derivatives.* Long-dated British government bonds rallied on Monday. Yields on 20- and 30-year gilts slid by around 23 basis points shortly after the markets opened at 8 a.m.