Skip to main content

Will the UK Budget prompt a bond market backlash?

Our base case is that the Chancellor will not loosen fiscal policy by much at the Budget on 28th October, preventing a bond market backlash. But his margin for error is small, and a loss of investor confidence is a key upside risk to our forecast for the 10-year Gilt yield to fall to 4.50% by end-2027.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.