The UK 10-year gilt yield eased to 4.55% after hitting a one-month high of 4.58% on Friday, following a sharp selloff triggered by Chancellor Rachel Reeves’s decision to drop planned income-tax increases. The move raised concerns about the UK’s fiscal sustainability, despite the Office for Budget Responsibility revising the projected budget deficit down to 20 billion GBP from 35 billion GBP, supported by stronger revenues and wage growth. Reeves is still expected to raise funds via threshold adjustments and salary-sacrifice reforms, having chosen a smaller-scale budget over major tax hikes. Political uncertainty persists amid cabinet divisions and recent turmoil around Prime Minister Keir Starmer. Markets now price in roughly a 75% chance of a December Bank of England rate cut. Investors this week will focus on inflation data, flash PMIs, and potential moderation in manufacturing and services growth.