10-year yields down 7.3 bps to 1.037%
Sunak isn't exactly trimming spending with the OBR saying it will rise to 41.6% of GDP in 2026-27 from 39.8% before the pandemic but the market is clearly not phased as gilt yields sink.
In the DMO's issuance note, there was less supply than anticipated so that's the likely driver.
The pound has bounced around today but it's generally in-line with some broader whippy USD moves.
