Economics

The Great British bond battering continues after budget speech

The government hiked taxes by £40bn

UK bond yields have increased since chancellor Rachel Reeves delivered her budget.
UK bond yields have increased since chancellor Rachel Reeves delivered her budget. Photo: Darren Dtaples/Agence France-Presse/Getty Images

UK bond yields continued to surge on 1 November, as fixed-income investors react in dismay to an increase in issuance.

On 1 November, the yield on the 10-year gilt rose nine basis points to 4.52%. The yield was 4.25% when chancellor of the exchequer Rachel Reeves began delivering her budget speech on 30 October. Yields move in the opposite direction to prices.

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