Ed Park, investment director, said: “The chancellor’s persistent emphasis on fiscal sustainability was not enough to stop gilt yields rising sharply.
“This indicated that some investors were anticipating a greater reduction in borrowing, although we note that the rise in yields was likely accentuated by strong employment data released in the US at the same time as the statement.
“In the medium term, we remain somewhat cautious on gilts as valuations remain unattractive relative to other asset classes.
“Furthermore, any slowdown in economic growth could again lead the chancellor to increase borrowing.”
