Tax Increases, Spending Cuts at U.K. Budget Could Boost Confidence in Gilts -- Market Talk
Dow Jones
Nov 10, 2025
1034 GMT - Investors in U.K. government bonds, or gilts, could gain confidence if Treasury Chief Rachel Reeves announces a mixture of tax increases and spending cuts which improve fiscal headroom, UBS's Anthi Tsouvali says in a note. Reeves is due to announce the budget on Nov. 26. "Should tax increases be paired with spending cuts and a stronger fiscal buffer, a more sustainable budget framework could emerge," Tsouvali says. Such changes would likely push gilt yields lower, she says. Reeves signalled in a speech last week that tax rises were possible. Ten-year gilt yields rise around 1 basis point to last trade at 4.470%, Tradeweb data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
November 10, 2025 05:34 ET (10:34 GMT)
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