UK gilt yields extend rise as govt unveils more borrowing
- Britain's 30-year yields rose almost 10 basis points on the day to 1.33% while 10-year yields were up 7 basis points to 0.76%.
- UK equities remained broadly unchanged during Sunak's speech with the domestically focused FTSE 250 index holding on to gains and the FTSE 100 easing just slightly.
Yields on longer-dated British government bonds rose on Wednesday as finance minister Rishi Sunak unveiled new support measures to support the economy through the COVID-19 crisis and forecasts showed growth may recover earlier than expected.
The government will borrow significantly more in the coming financial year than thought just a few months ago, according to new forecasts and will return to its pre-pandemic size in mid-2022, six months earlier than previously forecast, Sunak said.
Britain's 30-year yields rose almost 10 basis points on the day to 1.33% while 10-year yields were up 7 basis points to 0.76%.
UK equities remained broadly unchanged during Sunak's speech with the domestically focused FTSE 250 index holding on to gains and the FTSE 100 easing just slightly.
At 1317 GMT, the indexes were up 1.1% and 0.6% respectively
The pound was steady around the $1.40 mark and was 0.3% higher against the euro on the day.
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