<p style=““ class=“text-align-justify“>Well, here we go. Sterling is now nudging higher as there is word on the street that the government may look to perform ‚the mother of all U-turns on the mini-budget‘, despite having earlier brushed aside talk of that <a target=“_blank“ href=“https://www.forexlive.com/news/uk-pm-spokesperson-says-truss-will-not-u-turn-on-economic-policy-20221013/“ target=“_blank“>here</a>.</p><p style=““ class=“text-align-justify“>There was already a hint to the move earlier from gilts, as was tipped by our friend PiQ in <a target=“_blank“ href=“https://www.forexlive.com/news/long-end-gilt-yields-come-off-the-boil-20221013/“ target=“_blank“>this earlier post</a>. It looks like the government is the one causing the ripples. Here’s the source tweet for this post:</p><blockquote class=“twitter-tweet“ data-partner=“tweetdeck“><p lang=“en“ dir=“ltr“>A former cabinet minister tells me: “Brace for the mother of all U-Turns on the mini budget today. A friendly person in the know is advising us to steer clear of the media today to avoid the explosion. We wouldn’t want to look silly by tomorrow.” <a target=“_blank“ href=“https://twitter.com/hashtag/waitandsee?src=hash&ref_src=twsrc%5Etfw“>#waitandsee</a></p>— Nicholas Watt (@nicholaswatt) <a target=“_blank“ href=“https://twitter.com/nicholaswatt/status/1580517767299547136?ref_src=twsrc%5Etfw“>October 13, 2022</a></blockquote><p style=““ class=“text-align-justify“> That’s going to be real interesting but keep in mind, for now this is all talk still. There’s also added context here:</p><blockquote class=“twitter-tweet“ data-partner=“tweetdeck“><p lang=“en“ dir=“ltr“>Downing Street denying any changes to mini budget but I’m told by sources discusssions underway over which bits might yet be junked give the scale of the concernLooking at a return to the mandate from the leadership contestNo clarity on timing of announcement if it happens</p>— Sam Coates Sky (@SamCoatesSky) <a target=“_blank“ href=“https://twitter.com/SamCoatesSky/status/1580521390683586560?ref_src=twsrc%5Etfw“>October 13, 2022</a></blockquote><p style=““ class=“text-align-justify“> So far, gilts aren’t responding too much with 30-year yields still holding down about 30 bps to 4.57% at the moment.</p><p style=““ class=“text-align-justify“>Update: GBP/USD now climbing above 1.1200, up 1% on the day.</p>

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