The UK 10-year gilt yield fell to as low as 4.39% before trimming losses to just above 4.40%, remaining near its lowest level since December 2024, as investors digested comments from Finance Minister Rachel Reeves’ pre-budget speech while awaiting the Bank of England’s policy decision on Thursday. In a rare address just three weeks ahead of the November budget, Reeves warned that the government faces “hard choices” to secure public spending and reduce Britain’s debt, signaling the possibility of broad tax increases to avoid a return to austerity. On the monetary policy front, the Bank of England is widely expected to leave interest rates unchanged for a second consecutive meeting. Still, markets are increasingly pricing in rate cuts this year amid signs of slowing growth and moderating inflation.