Boost for Rachel Reeves as bond yield falls while she considers tax rises and spending cuts in budget
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The UK government’s borrowing costs have fallen to the lowest level since July as Rachel Reeves considers tax rises and spending cuts before next month’s autumn budget.
In a boost for the chancellor, the yield – in effect the interest rate – on 10-year UK government bonds has fallen by about 0.15 percentage points this week, after briefly dipping below 4.5% early on Friday for the first time in three months.
Government bond yields have tumbled across advanced economies, as investors scrambled to buy safe-haven assets amid fears over US-China trade tensions and signs of stress in the US banking system.
