UK bond traders are getting ready for a significant announcement from Chancellor Rachel Reeves, who is expected to reveal a record borrowing plan this week.

The Debt Management Office is anticipated to disclose a £15 billion increase in gilt issuance for the current fiscal year, pushing total borrowing to £293 billion. This figure represents the highest level of borrowing since 2020, a year heavily influenced by pandemic-related fiscal measures.

The upcoming announcement is expected to attract significant attention from financial markets as the government aims to balance economic growth with fiscal discipline. The increase in gilt issuance reflects the ongoing pressures on public finances and the challenges faced by the government in navigating economic recovery.