FX.co ★ UK 10-Year Gilt Yield Rises to 5-Week High

The yield on the UK's 10-year government bonds has risen to 4.6%, marking its highest point in five weeks, as uncertainty surrounding the upcoming budget takes precedence over increased expectations of an interest rate cut in December. Amid heightened anticipation regarding government fiscal plans, the financial market environment remains uncertain until more definitive measures are announced. Prime Minister Keir Starmer has assured that there will be no austerity measures, and the budget will reflect Labour's core principles, while Chancellor Rachel Reeves focuses on reducing living costs and further tempering inflation in her statement on November 26th. Although recent data for October indicates a decrease in overall inflation, persistently high food prices are still a major concern. Despite these challenges, traders have heightened their expectations for monetary easing, with the markets now factoring in an 84% probability of a quarter-point rate decrease in December.