U.K. Budget Risks Appear Underpriced in Gilts -- Market Talk

1117 GMT - U.K. government bonds, or gilts, appear little priced for fiscal risks related to the October 28 budget, Ebury's Matthew Ryan says in a note. Gilts have traded relatively calm in recent weeks compared to bonds in continental Europe and the U.S., he says. "In some ways this is not overly surprising, given that the U.K.'s fiscal situation, while far from pristine, is not as dire as France's, but we also think the risk is underpriced ahead of the budget later this month." The risk of more significant tax rises and higher borrowing is gaining traction among market commentators but is yet to show up in gilts, he says. Ten-year gilt yields rise 8.2 basis points to 5.456%, according to Tradeweb. (renae.dyer@wsj.com) (END) Dow Jones Newswires October 07, 2026 07:17 ET (11:17 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or pub