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Liz Truss gilt rates tweet completely dismantled

Beautiful stuff

Charlie Herbert by Charlie Herbert
2025-07-10 11:43
in News
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Liz Truss has been completely dismantled on social media after she accused the government of a “huge economic failure.”

In a post on X, Truss highlighted that gilt rates were higher than in October 2022, when her infamous mini-budget managed to torpedo the British economy.

She wrote: “Gilt rates are higher than they were in October 2022. Yet there is no media outcry or negative commentary from the @bankofengland. Britain’s institutions are complicit in this huge economic failure.”

Gilt rates are higher than they were in October 2022.

Yet there is no media outcry or negative commentary from the @bankofengland.

Britain's institutions are complicit in this huge economic failure. pic.twitter.com/ceObWkAtK0

— Liz Truss (@trussliz) July 8, 2025

READ NEXT: Kemi Badenoch says she didn’t know Liz Truss was ‘still in the Conservative Party’

But it wasn’t long before the logic behind her argument was absolutely dismantled by a Labour councillor with “an explainer that a child could understand.”

Sebastian Salek replied on X: “Yields hitting Truss levels does NOT mean the economy is crashing. Anyone who says this doesn’t understand economics. I covered this stuff for years at Bloomberg. Quick explainer that a child could understand.

Lots of things affect bond prices. Sometimes it’s a domestic issue, sometimes it’s global.

Right wingers are desperately trying to argue this move is domestic – that investors are worried about the UK economy.

Fortunately, there’s an easy way to check. pic.twitter.com/S77HRUOdEN

— Sebastian Salek (@sebastiansalek) July 8, 2025

In a thread, Salek explained that multiple things can affect bond prices and that UK bond yields weren’t dramatically off US bond yields.

The gap between UK and US bond yields is called a ‘spread’.

When that gap widens, something is affecting one country, but not the other.

If the UK economy were crashing you’d see a spike on this chart:

— Sebastian Salek (@sebastiansalek) July 8, 2025

When looking at the ‘spread’ between UK and US bond yields, the gap is nowhere near the level it was after Truss’s mini budget and things have actually “been relatively calm this year.”

He urged people to not be “drawn in by people who don’t understand basic financial concepts.”

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If markets were crashing, we’d also see:

• Pound slumping (it’s near a 4-year high vs dollar)
• Mortgage rates surging (they’re trending down)
• Credit default swaps leaping (also falling)

So please don’t be drawn in by people who don’t understand basic financial concepts!

— Sebastian Salek (@sebastiansalek) July 8, 2025

Liz Truss not understanding basic economics? Well I never…

Tags: Liz Truss

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