Market News
Pound slides to 14-month low as gilt pain intensifies - REUTERS
By Amanda Cooper and Harry Robertson
Summary
- UK government bond yields highest in 16 years
- Higher yields add to worries over UK government finances
- Finance ministry says it has 'iron grip' on public purse
LONDON, Jan 9 (Reuters) - The pound fell to its lowest since late 2023 on Thursday, under pressure from a selloff in global bonds that has driven the UK government's borrowing costs to their highest in over 16 years, which has reignited concern about Britain's finances.
Sterling was last down 0.6% at $1.2295, having touched its lowest since November 2023 earlier in the day, while the cost of hedging against bigger price swings over the coming month jumped to its highest since the March 2023 banking crisis .