Isophoric News · Tuesday, October 27, 2026
Britain sold five-year debt at its highest average yield since 2008 the day before the Budget
The Debt Management Office sold 4.5 billion pounds of five-year gilts on Tuesday morning at an average yield of 5.036%, the highest since 2008, the Guardian's business live blog reported, citing Reuters. Investors bid for 3.51 times the amount on offer, the Guardian said. Chancellor John Healey was due to deliver his first Autumn Budget on Wednesday, CNBC reported. The Guardian said investors expected the Budget to cut the government's fiscal headroom, the margin within its borrowing targets, to about 15 billion to 20 billion pounds from 23.6 billion pounds in March. Ion Jauregui was quoted by the Guardian saying there was "very little room for error," with 10-year gilts yielding 5.35%. The Guardian also quoted Aberdeen Investments' Matthew Amis saying that a "dull" Budget would be rewarded with lower gilt yields. CNBC reported separately that the British Retail Consortium put annual shop price inflation at 2.1% for Oct. 1 to Oct. 7, its highest in over two years.