10-year bond prices fall after Budget

The Budget is having a marginal negative impact on the gilt market, already indicated by fall in the...

The Budget is having a marginal negative impact on the gilt market, already indicated by fall in the bond prices of 10-year bonds the day after the Budget. The expenditure outlined in the Budget and the Government's slightly looser monetary policy will raise yields in the gilt market but only at the margins, according to Paul Read, bond fund manager at Invesco Perpetual. He said: 'At the margin we may see some creeping issuance but I do not think Gordon Brown wants to issue too much.'Further issuance may depend on the yield curve at the time in order to assess the potential costs of bor...