The UK 10-year gilt yield eased to 5.4%, tracking US Treasury yields lower following a US market holiday, while oil prices ended a three-session rally. Investors also welcomed the IMF’s upward revision to its UK growth forecast, with GDP now expected to expand by 1.3% this year, up from the 1.0% projected in July. Attention is now turning to Chancellor John Healey’s upcoming Budget later this month, after the Institute for Fiscal Studies warned that the government must find £35 billion to meet its spending ambitions, fueling speculation over potential tax increases. On monetary policy, hawkish BoE policymaker Megan Greene argued that stronger-than-expected growth and a resilient labor market suggest interest rates should be higher than the current 3.75% to bring inflation under control. Markets are pricing in four rate hikes over the next 12 months, although many analysts consider this outlook excessive, given that several policymakers already view the current rate as above neutral.