The 30-year gilt yield has fallen to 5.8%, Bloomberg reports. That is 0.24 percentage points below the 6.04% peak earlier in October. Bloomberg does not give the date of the 5.8% reading.
Bloomberg reports that some large investors are betting the Chancellor, John Healey, will stick to fiscal discipline next week, and that this would set off a gilts rally.
Moyeen Islam, UK rates strategist at Barclays, told Bloomberg:
"delivering a boring budget might well turn out to be the best outcome from a bond market management perspective"
Bloomberg also reports that the UK pays more than its peers to borrow. This does not conflict with the IFS finding reported earlier. The IFS compared how far yields had risen over the year, not their level.
The IMF has warned Healey to use cost-of-living support "sparingly" or risk reigniting inflation, according to Bloomberg. It reports that the IMF chief economist, Silvana Tenreyro, has said the UK stands out among G7 countries for "debt stabilizing" budget plans.
Bloomberg recalls that gilts sold off in July on Burnham's first day as prime minister, after he said he would seek "any flexibility" within the fiscal rules.