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1228 GMT – Yields on U.K. government bonds, or gilts, rise while sterling falls after the U.K.’s Office for Budget Responsibility released forecasts ahead of the budget. The OBR raised its 2025 economic growth forecast to 1.5% from 1% but lowered its productivity growth forecast to 1% from 1.3%. The OBR also raised its forecast for the current budget deficit and public sector net borrowing for 2025-26. The OBR estimates there will be headroom of 22 billion pounds to meeting the government’s first fiscal rule. Ten-year gilt yields rise 4 basis points to 4.532% after the OBR release. Sterling falls to an intraday low against the dollar to $1.3121 after the release. The euro rises to an intraday high of 0.8818 pounds. ([email protected])
Rise in U.S. Treasury Yields Slows; Ultralong Yields Turn Lower
1143 GMT – U.S. Treasury yields trim their earlier rise, while longer-dated 20- and 30-year yields turn marginally lower in midday European trade. Moves remain minimal ahead of the Thanksgiving holiday, however. Recent U.S. data have boosted expectations of a 25-basis-point interest-rate cut by the Federal Reserve in December, although it remains possible that rates could be held steady. The two-year Treasury yield rises 0.8 basis points to 3.466% and the 10-year Treasury yield is up 0.6 basis points at 4.006%, Tradeweb data show. The 30-year Treasury yield falls 0.4 basis points to 4.653%. Money markets price a 76% probability of a rate cut next month, according to LSEG. ([email protected])
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