UK gilt yields hit 2024 high as investors mull over Budget borrowing

10-year gilt yield rises to 4.45%

UK gilt yields hit their highest levels of the year today (31 October), as investors digested the additional borrowing set out by Chancellor Rachel Reeves in the Budget.

The UK 10-year gilt yield increased by over 0.1 percentage points to 4.45% around 9:30 am before easing to 4.41% at the time of writing, while the two-year yield rose 0.18 percentage points to 4.42%, according to MarketWatch data. These moves followed a volatile Wednesday (30 October), as an early bond rally reversed once markets grasped the scale of Labour's borrowing plans in the party's first Budget in 14 years. The Office for Budget Responsibility said the net effect of Budget policies is to increase borrowing by £19.6bn this year and by an average of £32.3bn over the next five ye...