UK Government Borrowing Costs Reach 18-Year High Amid Leadership Unrest

AI Summary

UK government borrowing costs hit an 18-year high, with the 10-year bond yield exceeding 5.14%, the highest since 2008. The pound dropped 0.3% against the dollar to around $1.337, reflecting market concerns over potential increased borrowing under a possible Andy Burnham-led government. Additionally, 30-year gilt yields rose to 5.82%, marking a new 28-year high. This volatility is attributed to ongoing political uncertainty and fears surrounding higher public borrowing.