UK government bonds rallied on Thursday after Chancellor of the Exchequer Rachel Reeves held a market-facing briefing outlining how borrowing is firmly tethered to investor sentiment and fiscal rules.

The initial relief among gilt investors stemmed from her assurance that the Treasury would not ‘‘throw caution to the wind’’ on spending plans.

Ms Reeves declined to rule out tax rises in her forthcoming autumn budget, but she emphasised principles of fairness and responsibility and offered little detail beyond that framework.

Markets interpreted the tone as a signal that the government is mindful of borrowing costs and the importance of maintaining market confidence.

Analysts said the rally reflected relief that fiscal discipline remains the priority after recent gloom over rising yields and uncertainty in the Treasury’s plan.

However, the absence of specific measures underlined ongoing risks: bond investors remain vigilant about how the government will close its funding gap without triggering further yield increases.

As the Budget scheduled for 26 November approaches, the briefing marks a communications pivot by the treasury to restore clarity and calm to gilt markets.

Whether gains hold will depend on how credible Ms Reeves’ forthcoming choices on taxation, spending and borrowing appear to investors.