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UK attempts to rebuild fiscal headroom

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UK borrowing plans in Spring Statement last week provided a temporary boost to gilt markets, as a smaller-than-expected issuance profile and spending restraint helped restore fiscal headroom. But investors remain cautious, with experts from Federated Hermes including Orla Garvey and Mo Elmi warning of lingering risks to the UK’s economic resilience and renewed volatility in emerging markets.

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UK borrowing plans provide some initial assurance to investors. Smaller-than-expected UK borrowing plans delivered a boost to government debt markets this week, but questions

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