Gilts prices fell for a second consecutive day on Thursday amid growing concern over the UK’s rising debt levels. Investors took fright after the government’s annual Budget on Wednesday revealed that borrowing would soar in coming years, with a debt to GDP ratio approaching 80% from today’s 50%. Investors also questioned the credibility of the government’s growth forecasts, which are far more optimistic than IMF estimates. Benchmark 10-year gilt yields have risen about a quarter of a point since the Budget.

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