US crude futures maintained gains after the EIA crude inventory release.

Chancellor John Healey said in his first budget speech on Wednesday that the Office for Budget Responsibility forecasts the UK’s fiscal buffer will shrink by the end of the decade. The OBR projects that in 2029/30 tax receipts will exceed day-to-day spending by £15bn (about $20bn), down from a £24bn buffer the OBR estimated in the March budget update released by former chancellor Reeves. A survey of bond dealers earlier this month, citing higher borrowing costs and pressure on government spending, likewise expected the buffer to fall to £15bn. Healey said the government will meet its fiscal targets.

UK gilts extended gains; 30-year gilt yield fell 5 bps to an intraday low of 5.70%.