Healey chancellor appointment risks prompting defence spending fears in bond market

Andy Burnham had only been Prime Minister for a matter of hours when news broke that Rachel Reeves had been jettisoned, and it was quickly announced the former defence secretary would take over at the Treasury. The early favourite to become the next chancellor was Home Secretary Shabana Mahmood, who was widely considered to be at the more fiscally prudent end of the Labour Party spectrum.  With Mahmood staying in post, investors have had to quickly reassess and, as ever, the bond market is casting its judgement.  While Healey is not known to have radical stances on taxation and spe...