UK Bonds Fall as Reeves Opens Door to More Borrowing in Budget
- Spread between UK and German yields rises to highest in a year
- Report says Reeves will significantly boost borrowing headroom
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UK government bonds fell as investors braced for Chancellor Rachel Reeves to announce an aggressive borrowing plan to boost investment and fill a fiscal “black hole” she says the previous administration left her.
The yield on 10-year gilts rose as much as seven basis points to 4.27% on Thursday before paring the move. That widened the spread over equivalent German notes to 199 basis points, the highest in a year.