UK bonds and stocks advanced after Chancellor of the Exchequer John Healey delivered a well-telegraphed budget that reassured investors the government will stick to its pledges of fiscal discipline.

UK Prime Minister Andy Burnham was confronted by the harsh reality of Britain’s weak public finances on his return to parliament as the global selloff in government bonds left him facing a £12 billion ($16.2 billion) problem.

Some of the world’s biggest investors have been flocking to short-dated bonds as a selloff hits long-maturity government debt.