UK gilt yields fall as Reeves hints at broad-based tax rises in budget

LONDON, Nov 4 (Reuters) - Long-dated British government bond yields fell on Tuesday after finance minister Rachel Reeves said she would make the "necessary" choices to reduce debt and grow the economy amid speculation about tax rises in the budget later this month.

"As I take my decisions on both tax and spend, I will do what is necessary to protect families from high inflation and interest rates ... to protect our public services from a return to austerity," she told a news conference.

Yields on 30-year UK government bonds GB30YT=RR fell to 5.146% at 0821 GMT, their lowest since April 7, when financial markets were reeling from U.S. President Donald Trump's announcement of wide-ranging tariffs.

At 0919 GMT, 30-year yields were 3 bps down at 5.177%, around 1 basis point lower than the equivalent U.S. bond US30YT=RR.

Ten-year gilt yields dropped as much as 6 bps during Reeves remarks before rising to stand just under 3 bps lower on the day at 4.41%.

Reeves, who reiterated her commitment to her fiscal rules, did not rule out raising taxes on workers - a promise in Prime Minister Keir Starmer's election manifesto in 2024.