Gilt Yields Rise, Sterling Falls as Concerns Over Budget Resurface

Yields on U.K. government bonds, known as gilts, rose from low levels, while sterling eased as investors turned their focus to concerns about backloaded tax hikes in Wednesday’s U.K. budget.

U.K. treasury chief Rachel Reeves announced a series of tax increases that were expected to raise 26 billion pounds ($34.43 billion) to meet her self-imposed fiscal rules. Her budget increased the fiscal headroom to almost 22 billion pounds from 9.9 billion pounds at the previous statement in March.