Ministers are struggling to cool alarm after interest rates on UK gilts rose again this morning, having spiked to 27-year highs yesterday.

Yields on 30-year UK bonds, known as gilts, leapt to just below 5.7 per cent, the highest level since 1998 in the wake of a reshuffle seen as sidelining Rachel Reeves.

The interest rate on UK 30-year bonds hits the highest since 1998 as concerns over the economic outlook continue.