FX.co ★ UK 10-Year Gilt Yield Inches Down

The yield on the UK's 10-year government bond decreased to 4.44%, following the government's unveiling of a new budget. The budget outlined a trajectory of increased taxation and indicated a stricter grip on borrowing. Finance Minister Rachel Reeves stood by the plan, presented earlier this week, explaining the government's intention to generate £26 billion in tax revenue to bolster welfare spending, resulting in the highest tax burden since World War Two. Investors largely approved of the government's commitment to stricter public financial management, contributing to the decline in yields. Furthermore, the Bank of England decided to maintain interest rates in November after a narrow 5 to 4 decision. Inflation fell to 3.6% in October, increasing market speculation that the central bank may lower rates in its upcoming meeting.