Bond yields are falling, as City investors anticipate tax rises in Rachel Reeves’s 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

Newsflash: Germany has avoided falling into recession, in a welcome sign for Europe’s largest economy.

Germany’s GDP expanded by 0.2% in July-September, new data shows, beating expectations of a contraction of 0.1%.

The UK’s 10-year Gilt is outperforming its European counterparts with just a few hours to go before Rachel Reeves’s first Budget, scheduled for 1230 GMT.

Is this a sign that the bond market will welcome the fiscal shake up that is set to be announced later today? we could traders see ‘sell the rumour and the buy the fact’ in the UK Gilt market, once the uncertainty of the Budget is out of the way.