The Bank of England said it would extend a series of planned debt buybacks to include inflation-linked bonds - predominantly owned by pension funds - which witnessed their biggest rout on record on Monday.
One-week sterling volatility is trading at almost 20%, and while down somewhat from the spike to almost 30% in the wake of the government's mini-budget, it is still well above the average of closer to 8% that has prevailed over the last five years, according to Refinitiv data.It has since recovered around 7% in value, but is still showing an 18% loss so far this year - its weakest annual performance against the dollar since 2008.
Kwarteng has since scrapped the plans to abolish the top rate of tax and brought forward the date he will detail his other plans.The British economy is buckling under the weight of almost double-digit inflation and is expected to tilt into recession this year due to the effects of a cost-of-living crisis, sky-high energy bills and the drag of Brexit.