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The two-year Bund is making significant moves with its largest weekly gain since 1990. The announcement of a broad tax cut in England has led to a dramatic increase in the yield on the ten-year. This has caused the yield to surge to 378-379, indicating that Britain will be borrowing more money in foreign markets, adding to inflation. The plan to subsidize energy and cap energy expenditures by British households has also impacted the pound, which is currently at a 37-year low, at around 110 level.
