UK borrowing costs surged close to 27-year highs yesterday amid claims that Britain is 'drifting without an anchor' and facing a 'moron premium'.
The latest sell-off in government bonds, known as gilts, piled fresh pressure on Rachel Reeves ahead of this autumn's Budget following a weekend in which she was warned she could require a 1970s-style IMF bailout.
It saw yields on 30-year gilts - which rise as prices fall - climb to over 5.6 per cent, a whisker away from a peak in April when they hit the highest level since 1998.
And the gloom spread to the stock market as Deutsche Bank experts sounded the alarm over rising unemployment and consumer caution.
Shadow Chancellor Mel Stride said of the gilts sell-off: 'This is what happens when you spend and borrow like there's no tomorrow.'
