Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “UK government bonds had a bruising session yesterday, with no real let-up this morning, as borrowing costs pushed back to levels not seen since the financial crisis.
“The 10-year yield is just shy of 5.1 per cent, while the 30-year yield is still above 5.7 per cent in early trading, as a cocktail of political uncertainty, rising oil prices, and renewed inflation concerns has landed at once.
“The worry is that pressure on Prime Minister Keir Starmer could eventually lead to looser fiscal policy, while higher energy costs are feeding expectations that the Bank of England may have to raise interest rates this year.
“It’s a tough mix: higher borrowing costs, weaker confidence and less room for the government to offer support if the economy slows.”
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