FT News Briefing UK bond market wades through Budget uncertainty
98 snips
Nov 17, 2025 
Tommy Stubbington, Markets news editor at the Financial Times, discusses the UK gilt market's reaction to recent fiscal policy changes and investor concerns. He emphasizes the importance of avoiding surprises to stabilize the market. Meanwhile, Miles McCormick, U.S. economics correspondent, highlights the government shutdown's impact on critical economic data collection and how it complicates Fed decisions. They also touch on Spain's improving fiscal position, projecting its deficit may soon be smaller than Germany's for the first time in decades.
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Gilt Sell-Off Reflects Borrowing Concerns
- Investors sold UK gilts after Chancellor Rachel Reeves scrapped a planned income tax rise, because markets had priced that revenue into funding expectations.
- Tommy Stubbington warns this renewed nervousness reflects worries about rising UK borrowing and could set a new, more cautious equilibrium for yields.
Not A Repeat Of 2022 Crisis
- The current gilt market move is serious but not a replay of the 2022 Liz Truss crisis, with yields lower than that peak.
- Stubbington says markets are nervous but the situation sits nearer October levels, not the extreme earlier this year.
Avoid Budget Surprises Pre-Launch
- The government should avoid further surprises in the run-up to the November 26 budget to prevent renewed market stress.
- Tommy Stubbington recommends steady communication and no more negative shocks to restore investor calm.