The U.K. government bond market is likely to remain sensitive to the details of fiscal plans under Andy Burnham, the frontrunner to become U.K. prime minister, Goldman Sachs analysts say in a note. "It remains unclear how his plans differ from current government policy and how they will be funded." Burnham has pledged to stick to current fiscal rules, although his plans are likely to require additional outlays, they say. Significant existing spending pressures will make it difficult to deliver compensating spending cuts elsewhere and raising revenue through tax hikes looks challenging, they say. The 10-year gilt yield rises nearly 3 basis points to last trade at 4.795%, according to Tradeweb.(renae.dyer@wsj.com)
Dow Jones Newswires
U.K. Fiscal Plans Under Next Leader Are Key For Gilt Market — Market Talk
The U.K. government bond market is likely to remain sensitive to the details of fiscal plans under Andy Burnham, the frontrunner to become U.K. prime minister, Goldman Sachs analysts say in a note. "It remains unclear how his plans differ from current government policy and how they will be funded."…