Dan Coatsworth, head of markets at AJ Bell, said: “Speculation that Chancellor Rachel Reeves has ripped up part of her Budget plan only days before the big event has spooked the bond market.
“Gilt yields moved higher on talk that the Chancellor won’t raise income tax rates, leaving bond investors wondering which alternative path she might take to repair UK public finances.
“Bond markets should, in theory, want the government to take bold decisions rather than tinkering at the edges.
“For a while it looked as if this might happen, but the latest reports about a policy rethink would suggest otherwise.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.