British government bond yields rose sharply on Friday following reports Finance Minister Rachel Reeves is no longer planning to raise income tax rates in the Autumn Budget later this month.

The yield on the benchmark 10-year gilt initially rose around 13 basis points in early trade, but was last around 7 basis points higher at 4.51%. Yields on the long term 20- and 30-year gilts were last seen 8.5 and 9 basis points higher, respectively. Yields and prices move inversely to one another.