Political instability, fears of drawn-out Labour leadership campaign, and possibility of Reform government all blamed for jump in UK borrowing costs
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The UK bond market is bruised this morning after a day of political turbulence drove up Britain’s borrowing costs.
UK long-term bond yields hit their highest levels in 28 years on Tuesday, as fears about a change of Labour leadership triggered investor jitters and warnings of further bond market turmoil.
But this morning, Keir Starmer remains in post having fought back against pressure to lay out a departure timetable, with health secretary Wes Streeting not (yet, anyway) having launched a challenge.
