There needs to be some stabilization in the bond market before we get any sustained recovery in risk. This is especially true in the UK, where the bond market has imploded since the budget.
Kwarteng continues to double down on a program of even more tax cuts in its rhetoric and I don’t think the market likes the sound of that.
Over the past few minutes, gilt yields have reversed today’s decline and are now above yesterday’s high.
Watch GBP and see if it spreads.