Rolling coverage of the latest economic and financial news, as City investors anticipate tax rises in Rachel Reeves first budget

• Reeves to promise ‘wealth and opportunity for all’ in major tax-raising budget
• From capital gains to NICs: tax changes to look out for in autumn 2024 budget

Rachel Reeves may risk a sigh of relief if she checks the bond markets this morning, because UK government borrowing costs are dipping.

The yield, or interest rate, on 10-year government bonds has dropped to 4.26% this morning, a fall of over basis points from last night’s close of 4.3%.

UK Gilt yields have been rising this month with the 10-year yield up just over 30bps from the September close. But it is debatable how much of that move reflects fears over increased Gilt supply on the potential for increased borrowing.

The US Treasury 10-year yield is up over 50bps this month on expectations of a Trump election victory next week and that is helping lift yields everywhere.