Berenberg analyst Andrew Wishart said in a note investors expect the UK government to continue lowering the public debt-to-GDP ratio in Wednesday’s budget. The narrow 2yr-10yr gilt yield spread reflects market pricing for fiscal prudence. Wishart warned that if Chancellor John Healey announces government borrowing above market expectations, UK government bond yields could rise sharply.

2026-10-26

Berenberg analyst Andrew Wishart said in a note investors expect the UK government to continue lowering the public debt-to-GDP ratio in Wednesday’s budget. The narrow 2yr-10yr gilt yield spread reflects market pricing for fiscal prudence. Wishart warned that if Chancellor John Healey announces government borrowing above market expectations, UK government bond yields could rise sharply.