As MPs return from their six-week (yes, really) summer break on Tuesday the 3rd September, Chancellor Sajid Javid has announced that the Wednesday 4th will be the date of his first spending review which will ‘cover the themes and priorities’ he will focus on. Extra spending on health, education, law and order are expected. Some feel he chose to announce this sooner rather than later was to ‘’clear the decks’’ and avoid departments haggling over budgets, rather than preparing for Brexit.
Benchmark US Treasury yields continue to slide slowly – and invert further. Two-year paper now yields 1.526 per cent while 10-year has dipped to 1.476 and perhaps, more importantly, 30-year for the first time ever yields less than 2 per cent. The last time twos-tens inverted was at the very end of 2005, well before the creaks in the banking system started showing.
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