UK 10-Year Gilt Yield Edges Down from 1-Month High

2025-11-17 11:43 By Agna Gabriel 1 min. read

The UK 10-year gilt yield eased to 4.52% after hitting a one-month high of 4.58% on Friday, following a sharp selloff triggered by Chancellor Rachel Reeves’s decision to drop planned income-tax increases.

The move raised concerns about the UK’s fiscal sustainability, despite the Office for Budget Responsibility revising the projected budget deficit down to £20 billion from £35 billion, supported by stronger revenues and wage growth.

Reeves is still expected to raise funds via threshold adjustments and salary-sacrifice reforms, having chosen a smaller-scale budget over major tax hikes.

Political uncertainty persists amid cabinet divisions and recent turmoil around Prime Minister Keir Starmer.

Markets now price in roughly a 75% chance of a December Bank of England rate cut.

Investors this week will focus on inflation data, flash PMIs, and potential moderation in manufacturing and services growth.



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