UK 10-year gilt yields edged down to 5.35% as investors awaited Wednesday’s budget, with expectations that Chancellor John Healey will adhere to fiscal rules helping ease pressure on government bonds. According to the Financial Times, the government plans to provide £20.4 billion in additional funding to the National Wealth Fund and British Business Bank through extra borrowing. The National Wealth Fund is expected to receive £15.4 billion over five years, including £2 billion for renewable energy, while the British Business Bank will get £5 billion. However, borrowing is not due to begin until the 2028–29 fiscal year, limiting near-term concerns for bond markets. Healey has also pledged to give businesses more “breathing space,” raising expectations of potential cuts to electricity levies. Investors will also watch the Bank of England’s monetary indicators later this week, alongside policy decisions from the Federal Reserve and European Central Bank.