UK Gilt Yields Rise Ahead of Budget

2026-10-28 10:11 By Joana Ferreira 1 min. read

UK 10-year gilt yields edged up to 5.36% as oil prices rebounded amid renewed supply concerns, while investors awaited UK Chancellor John Healey’s first budget announcement and the Federal Reserve’s policy decision later today.

Healey has announced plans to abolish standing charges on gas bills from 2027 to help ease the impact of rising energy costs on households.

He is also expected to reverse plans to reduce the annual cash ISA allowance, a measure introduced by Prime Minister Keir Starmer and Chancellor Rachel Reeves to encourage greater investment in financial markets.

Earlier this week, reports suggested the government was considering a roughly 4% increase in the national living wage, alongside measures to reduce electricity costs for businesses.

The budget is also expected to allocate an additional £20.4 billion to the National Wealth Fund and the British Business Bank, funded through increased borrowing.



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