UK Markets Rally as Traders Welcome Borrowing Restraint

UK markets rallied as the budget unveiled by Chancellor of the Exchequer Rachel Reeves signaled that the government is taking a more restrained approach to borrowing.

The pound strengthened above $1.32 and bonds climbed, pushing the 10-year yield lower for a fifth day to 4.42%. The 30-year yield dropped 11 basis points, headed for the biggest daily slide since April, after the Debt Management Office announced it would sell less long-dated debt. British banks led the FTSE 100 Index to a 1% advance.