U.K. Bonds Swing After Government Unveils Budget Plans
U.K. bond markets went on a rollercoaster ride after the government unveiled plans to raise taxes and borrow billions to fund investment. Bond prices initially rallied as Rachel Reeves, the U.K.'s finance minister, announced the budget plans. Partly because of the extra inflation that borrowing might cause, the OBR expects that the Bank of England will keep interest rates higher than it would have done without the budget.