<p style=““ class=“text-align-justify“>30-year gilt yields are down 39 bps to 4.39% on the day as we wait to hear from UK finance minster, Jeremy Hunt, and his emergency statement.</p><p style=““ class=“text-align-justify“>The expectation is that we will see a massive U-turn in the mini-budget but the latest word on the street is suggesting that he will also announce that the energy price guarantee will only remain universal until April next year. Thereafter, the policy will become targeted and capped. This was something the BOE feared would add to <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1″ class=“terms__main-term“>inflation</a> pressures, so it is likely that we are seeing the government work more closely with the central bank after the weekend meeting.</p><blockquote class=“twitter-tweet“ data-partner=“tweetdeck“><p lang=“en“ dir=“ltr“>BREAKING:Jeremy Hunt is poised to announce that the energy price guarantee will only remain universal *until April*It will then become targeted and cappedGovt helped by falling gas prices<a target=“_blank“ href=“https://twitter.com/MrHarryCole?ref_src=twsrc%5Etfw“>@MrHarryCole</a> first highlighted changes this morning</p>— Steven Swinford (@Steven_Swinford) <a target=“_blank“ href=“https://twitter.com/Steven_Swinford/status/1581945801479446528?ref_src=twsrc%5Etfw“>October 17, 2022</a></blockquote><p>Let’s see if we are going to get another round of buy the rumour, sell the fact play in gilts.</p>

This article was written by Justin Low at forexlive.com.