With the UK budget coming rapidly into view, markets have baulked at media speculation suggesting the Chancellor will row back on a planned fiscal consolidation.
It appears the Chancellor has reduced the scale of the planned tax hikes on the back of improved fiscal forecasts from the budgetary watchdog, the Office for Budgetary Responsibility (OBR).
The circularity of this fragile budget strategy has now unwound with the renewed rise in gilt yields today, with the 10-year now trading at around 4.5%.
