Institutions say the UK budget plan could trigger market volatility if additional borrowing exceeds expectations.

[Institution: If UK budget borrowing exceeds expectations, market volatility may be triggered] Stephen Jones of the asset management division at UK financial services company Aegon stated that the UK budget to be released on Wednesday is unlikely to bring surprises, as the government lacks both fiscal room and sufficient political will to introduce bold measures. "But when the whole market is prepared for a dull budget, even a small surprise is enough to give markets a scare before Halloween," he said. In recent weeks, as market sentiment towards UK assets has turned more optimistic, UK government bond prices have continued to rise. Jones remarked, "The tail risks brought by any additional borrowing do not lie in the budget speech itself, but are hidden deep within the underlying fiscal mechanisms." He believes that if the UK government increases financing supply by around 1 billion GBP, perhaps raising funds through off-balance-sheet instruments, the market can still absorb it; but if UK government bond issuance further increases by 3 to 4 billion GBP, then it will be much harder for the market to accept it easily.