Why higher bond yields aren't causing a Mini-Budget meltdown

23 September marked the third anniversary of the Truss/Kwarteng Mini-Budget, an extraordinary and calamitous episode which ultimately claimed the jobs of both the chancellor and the prime minister, and set the scene for a Labour victory in the 2024 general election. The mini-budget sparked a sharp sell-off in the UK gilt market, which led to a Bank of England bailout and a wholesale government policy U-turn. The gilt market is important because it sets the rate for government borrowing, which affects the taxes we pay. It also determines what rate UK companies can borrow at, and how mo...