The 10-year yield on UK gilts – Government bonds – rose by 0.05 percentage points to 4.81% shortly after the market opened.

The Office for National Statistics said the government’s net borrowing was £23.2 in May, above economists’ £19bn prediction.

The 10-year yield on UK gilts – Government bonds – rose by 0.05 percentage points to 4.81% shortly after the market opened.

By Miriam Mukuru and Renae Dyer

Yields on ten-year government bonds, known as gilts, climbed from 4.76 per cent to around 4.85 per cent. Bond yields rise when their prices fall.