The price of outstanding UK government bonds fell after Gordon Brown, the UK chancellor of the exchequer, unveiled a £7.4bn (€10.9bn) increase in government borrowing in 2003 in his annual budget speech to parliament.

Data published by the UK Debt Management Office to coincide with the chancellor's speech showed that gilt sales in 2003 will be worth £47.4bn, up from the £40bn estimate predicted as recently as March 20.