Bond yields soar and pound falls against dollar as investors brace for potential Labour leadership change
Long-term UK borrowing costs soared to the highest level in almost three decades on Tuesday amid fears about a change of Labour leadership, before dropping back as cabinet ministers rallied around Keir Starmer.
With investors worried about potential changes to Labour’s tax and spending plans, the yield – in effect the interest rate – on 30-year government bonds jumped 11 basis points on Tuesday morning to 5.794%, the highest since May 1998.
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