Investors in U.K. government bonds, or gilts, have near-term reassurance that the potential next prime minister, Andy Burnham, will maintain fiscal prudence following his speech on Monday, Aberdeen Investments' Alex Everett says in a note. Burnham outlined an ambitious plan to reduce welfare expenditure, which signals some willingness to take challenging decisions, Everett says. "With such a focus on investment and improvement spending, the re-affirmation of prudence was welcome at this relatively early stage," he says. Ten-year gilt yields fall 1 basis point to last trade at 4.723%, Tradeweb data show. ([email protected])
Dow Jones Newswires
Gilt Investors Welcome Burnham's Commitment to Fiscal Prudence — Market Talk
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Investors in U.K. government bonds, or gilts, have near-term reassurance that the potential next prime minister, Andy Burnham, will maintain fiscal prudence following his speech on Monday, Aberdeen Investments' Alex Everett says in a note. Burnham outlined an ambitious plan to reduce welfare expend…