UK 10-year gilt yields edged higher to 5.23% on Tuesday, following an eight-basis-point decline on Monday, as oil prices moved higher and investors digested fresh UK public finances data. Brent crude rose towards $102 a barrel, putting it on track to snap a four-day losing streak, amid continued uncertainty over oil flows and potential diplomatic efforts to ease tensions in the Middle East. Meanwhile, UK government data showed the budget deficit widened to GBP 18.3 billion in August, above economists’ expectations of GBP 15.5 billion. The wider shortfall was partly attributed to the impact of inflation, which has increased government spending on items including state pensions and social benefits. Attention is now turning to next month’s Autumn Budget, with the government reportedly considering changes to its fiscal rules that would allow borrowing for infrastructure and other building projects to be excluded. A similar proposal was previously floated during Keir Starmer’s time in office.