Lates News

UBS's Anthi Tsouvali stated in a report that if UK Chancellor Rishi Sunak announces a combination of tax hikes and spending cuts to improve fiscal space, investors in UK government bonds may gain confidence. Sunak is scheduled to announce the budget on November 26. Tsouvali pointed out, "If tax increases are combined with spending cuts and a stronger fiscal buffer, it could create a more sustainable budget framework." She stated that this change could push UK bond yields lower. Sunak hinted at a possible tax hike in a speech last week. According to data from Tradeweb, the yield on UK's 10-year government bonds has increased by approximately 1 basis point to a current trading price of 4.470%.