UK 10-year gilt yields fell toward 5.3%, reaching their lowest level in over a month as investors assessed Chancellor John Healey’s first budget. Healey reaffirmed his commitment to the government’s fiscal rules, with the Office for Budget Responsibility (OBR) estimating fiscal headroom at GBP 15 billion for 2029–30, in line with expectations. Key measures include energy bill relief, lower-than-expected bank tax increases, tariff suspensions on more than 100 supermarket products and a 3.9% increase in minimum wages. The budget also allocates an additional GBP 20.4 billion to the National Wealth Fund and the British Business Bank to support investment and 140,000 jobs. Meanwhile, the OBR cut its 2027 GDP growth forecast to 1% from 1.6%, citing the economic impact of the Iran war, while raising its 2026 projection to 1.2% from 1.1%. Borrowing and public debt forecasts were also revised higher across the outlook period.