Broad-based losses in September – the first signs of systemic stress

Financial assets were dragged by broad-based losses in September, and both risk-free and risk assets were under fire. In September, financial markets also saw the first signs of stress of a more systemic nature. At end-September, Bank of England (BoE) intervened in the financial market, in response to strong market reactions to the publication of the so-called Mini-Budget ahead of the full Budget. A few days later, UK 30Y government bond yields rose by 1.5pp, and the GBP was down by just over 10% vs the USD