In a highly unusual move, Threadneedle Street said it will step in after the bonds 'significant repricing of UK and global financial assets' since Kwasi Kwarteng's tax-cutting Budget. 'This repricing has become more significant in the past day - and it is particularly affecting long-dated UK government debt. Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability,' the statement said. 'This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy.' The Chancellor is meeting investment banks after his dramatic move spooked traders - driving up government borrowing costs to eye-watering levels and hammering Sterling. The currency had clawed back ground after reaching an all-time low of just $1.03 on Monday, but fell again this morning after the IMF criticised the 'large and untargeted' fiscal package. The febrile atmosphere was underlined with credit ratings agency Moody's cautioning that the fiscal package risked 'permanently weakening the UK's debt affordability'.
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