UK Borrowing Costs Surge Amid Labour's Budget Moves
Short-term UK government borrowing costs saw their largest weekly increase in over a year as Labour's budget raised inflation expectations. Despite initial declines, investor sentiment improved with weak U.S. jobs data. Investors remain cautious, with many believing the market reaction may be overdone.
Short-term British government borrowing costs are experiencing their largest weekly jump in over a year, as Labour's tax-and-spend budget raises inflation expectations.
Two-year gilt yields have surged 26 basis points this week, while 10-year yields have risen 21 basis points, marking significant movements amid investor responses to the economic policies.
The market remains vigilant, with the potential for further fluctuations as global economic conditions continue to evolve, particularly with influences from U.S. economic data.
(With inputs from agencies.)
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