UK Gilt Yields Fall to September Lows

2026-10-30 11:30 By Joana Ferreira 1 min. read

UK 10-year gilt yields fell further below 5.3%, reaching their lowest level since September 22, after Chancellor John Healey’s first budget met the government’s self-imposed borrowing rules and largely reassured investors, with little of the market volatility seen around previous fiscal announcements.

Delivered on Wednesday, the budget included spending plans broadly in line with expectations and few surprises for markets.

Healey said the government would use part of its fiscal headroom, now reduced to £15 billion from an earlier estimate of £24 billion, to meet its main fiscal target while continuing efforts to restore public finances amid the economic fallout from the Iran conflict.

Meanwhile, money markets are almost fully pricing in a Bank of England rate hike on November 5, followed by further increases in February and July, with a 50% probability of another move by December 2027, amid persistent inflation above the BoE’s target and stronger-than-expected economic data.



News Stream
UK Gilt Yields Fall to September Lows
UK 10-year gilt yields fell further below 5.3%, reaching their lowest level since September 22, after Chancellor John Healey’s first budget met the government’s self-imposed borrowing rules and largely reassured investors, with little of the market volatility seen around previous fiscal announcements. Delivered on Wednesday, the budget included spending plans broadly in line with expectations and few surprises for markets. Healey said the government would use part of its fiscal headroom, now reduced to £15 billion from an earlier estimate of £24 billion, to meet its main fiscal target while continuing efforts to restore public finances amid the economic fallout from the Iran conflict. Meanwhile, money markets are almost fully pricing in a Bank of England rate hike on November 5, followed by further increases in February and July, with a 50% probability of another move by December 2027, amid persistent inflation above the BoE’s target and stronger-than-expected economic data.
2026-10-30
UK Gilt Yields Fall to One-Month Lows
UK 10-year gilt yields fell below 5.3%, reaching their lowest level in over a month, a day after Finance Minister John Healey unveiled a cautious budget aimed at supporting households facing global economic pressures. Healey reaffirmed the government’s commitment to its fiscal rules, announcing tax increases on banks, gambling, savings, and landlords, alongside tighter VAT rules for online marketplaces and measures to cushion households from rising energy bills. He also said the government would use part of its fiscal buffer, now reduced to £15 billion from a previous estimate of £24 billion, to meet its main fiscal target while maintaining efforts to repair public finances despite the economic fallout from the Iran conflict. The budget did little to alter market expectations for the Bank of England’s policy meeting next week. Money markets are fully pricing in a rate hike on November 5, with a second increase expected by February.
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UK 10 Year Government Bond Yield decreased to 5.29%, the lowest since September 2026. Over the past 4 weeks, United Kingdom 10Y Bond Yield lost 13.27 basis points, and in the last 12 months, it increased 85.84 basis points.
2026-10-29