FX.co ★ UK Gilt Yields Rise Ahead of Budget

UK 10-year gilt yields inched up to 5.36% as oil prices rebounded on renewed supply concerns, while investors looked ahead to UK Chancellor John Healey’s first budget and the Federal Reserve’s policy decision due later today. Healey has outlined plans to abolish standing charges on gas bills from 2027 in an effort to ease the pressure of rising energy costs on households. He is also expected to reverse proposals to cut the annual cash ISA allowance, a measure introduced by Prime Minister Keir Starmer and Chancellor Rachel Reeves aimed at boosting investment in financial markets. Earlier this week, reports indicated the government was considering an increase of around 4% in the national living wage, alongside steps to lower electricity costs for businesses. The budget is also expected to provide an additional £20.4 billion for the National Wealth Fund and the British Business Bank, financed through higher borrowing.