Gilt Market Calm a 'Pause, Not Pivot' on Burnham Spending, Green Says

Green, chief executive of the independent financial advisory firm, warned investors not to mistake the calmer morning for a change in direction. Healey's own record makes him an unlikely check on Burnham's appetite for spending, Green said. The appointment does nothing to neutralise the danger posed by the new premier's fiscal instincts.

Healey inherits a Treasury facing a scheduled fiscal statement later this year. The Office for Budget Responsibility will update its forecasts. The gilt market's reaction to that event will be the real test, Green said. He described the stabilisation as a pause, not a pivot.