Markets calm as Sunak secures lead to be next prime minister

The pound spiked from $1.13 to $1.14 last night upon hearing the news that Johnson had withdrawn from the race, settling back at $1.13 as of time of writing. Gilt markets reacted very positively to the news, with ten-year gilt yields dropping from 4.1% to 3.8% upon opening this morning, before rising slightly to 3.9%. Two-year yields reacted similarly, dropping from 3.7% to 3.4% upon opening, before rising to 3.5% at time of writing. Moody's downgrades UK outlook to 'negative' amid political turmoil However, markets are still not fully recovered from the damaging months of econo...