The yield on the UK’s 10-year gilt fell to 4.69%, down from Monday’s two-week high of 4.73%, as investors reacted to softer-than-expected PMI data and ongoing fiscal uncertainties. September’s S&P Global PMI showed a marked slowdown in private-sector activity, with services growth easing and manufacturing contracting further. Meanwhile, public sector net borrowing in August came in well above forecasts, intensifying concerns ahead of November’s Autumn Budget. Rising global debt levels, which recently pushed 30-year gilt yields to record highs, may further constrain the government’s room for additional spending. The Bank of England left interest rates unchanged last week, maintaining a cautious stance, with markets pricing in the next rate cut only in 2026.