It was a similar story for bonds, with the yield on the benchmark UK 10-year government bond, or gilt, trading between 1.28 per cent and 1.29 per cent, according to Mr Mould, “as bond vigilantes welcomed the chancellor’s ongoing determination to reduce the annual deficit and rein in the aggregate deficit, at least on a percentage of GDP basis”.
“The pound largely shrugged off the downgrade to GDP growth forecasts, coming in largely unchanged against the euro just below €1.13 and actually rising against the dollar (after an initial tumble) toward $1.3275,” he adds.
Roadmap for the industry
Buried on page 50 of the Budget document was an announcement about a new strategy for the asset management industry.
It states: “The government will publish a new long term strategy to ensure that the UK asset management industry continues to thrive and deliver the best possible outcomes for investors and the UK economy.
"This will include actions, to be taken forward in close collaboration with the industry, on skills, harnessing financial technology solutions, mainstreaming innovative investment strategies, and continuing a coordinated programme of international engagement.”
There was not much more detail on this for now, but the industry trade body did acknowledge it in a statement.
The Investment Association’s chief executive, Chris Cummings, says: “This strategy forms part of a package of measures, alongside the Asset Management Taskforce launched this autumn, which will provide our sector with a roadmap to help firms thrive through Brexit and beyond.
“These measures will help to ensure our industry continues to deliver the best possible outcomes for savers and the UK economy in the years to come.”
eleanor.duncan@ft.com
