UBS says gilts could rally if Burnham sticks to fiscal rules

UBS says UK government borrowing costs could fall if incoming Prime Minister Andy Burnham adheres to Labour’s fiscal rules. The implication is lower gilt/rates pressure tied to improved fiscal credibility, though it’s conditional on policy follow-through.

Analysis

UBS says UK government borrowing costs could fall if incoming Prime Minister Andy Burnham adheres to Labour’s fiscal rules. The implication is lower gilt/rates pressure tied to improved fiscal credibility, though it’s conditional on policy follow-through.