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Pound tumbles and bond markets sent into turmoil after Rachel Reeves's Commons tears - DAILY MAIL

JULY 03, 2025

Bond markets were sent into turmoil and the pound tumbled after the Chancellor’s tears in the Commons - drawing comparisons with the chaotic reaction to Liz Truss’s disastrous mini Budget.

UK ten-year borrowing costs surged close to 4.7 per cent as Sir Keir Starmer refused to offer Rachel Reeves his backing as she sat beside him at Prime Minister’s questions.

The pound fell by one per cent against the dollar to less than $1.36.

Traders are likely to be anxious that even after Ms Reeves’ dismal stewardship of the economy, any Labour replacement could bring more uncertainty to the public finances.

The spike took yields on ten-year government bonds – effectively the rate investors charge to lend to the government – to the highest level in nearly a month.

And the one-day movement was the worst since October 2022, after the Truss mini-Budget.

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