British markets take Healey's first budget in their stride
EWU•UK markets showed little reaction to finance minister John Healey's first budget, which set fiscal headroom at £15 billion, in line with expectations. The 10-year gilt yield fell 2 basis points to around 5.32%, while the FTSE 100 rose 0.1%.
1. Budget stays within expectations
UK markets took Healey's first budget in their stride as he pledged to stick to the government's borrowing rules. Fiscal headroom stood at £15 billion, in line with expectations but down from £23.6 billion in March.
2. Gilt yields edge lower
The 10-year government bond yield fell 2 basis points to around 5.32%, while the 30-year yield dropped 3.5 basis points to around 5.71%. The pound slipped 0.1% to $1.3295.
3. Stocks and banks mixed
The FTSE 100 rose 0.1%, while the FTSE 250 fell 0.2%. Shares in Lloyds, Barclays and NatWest gained between 1.3% and 1.6% after a planned increase in the surcharge on their profits came in smaller than feared, rising from 3% to 6%.
