Fixed income fund managers and market analysts have said the government’s refusal to rule out changes to income tax in the Autumn Budget could be positive for UK gilts, despite denting growth.
After Prime Minister Keir Starmer refused to rule out deviating from Labour's manifesto pledges to not raise income tax, VAT or National Insurance during a session in the Commons on Wednesday (29 October), gilt yields spiked. According to data from MarketWatch, yields on UK 10-Year gilts rose overnight, jumping from 4.39% to a high of over 4.45% on Thursday (30 October). However, yields have since fallen slightly to around 4.431% at the time of reporting. In the background to this has been a saga involving Chancellor Rachel Reeves and a licence to rent out her family home, which...
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