Market News
UK bond market selloff heaps pressure on Reeves - REUTERS
Summary
- Reeves in spotlight after gilt yields jump
- 30-year government borrowing costs highest since 1998
- Sterling falls along with bond prices
- Market moves add pressure on Reeves to cut spending
- Government promises iron grip on public finances
LONDON, Jan 9 (Reuters) - Rachel Reeves is facing her first major test as Britain's finance minister after the government's borrowing costs climbed for a third day on Thursday and the pound's losses deepened, potentially forcing her to cut future spending.
The Treasury said late on Wednesday that it would maintain "an iron grip" on the public finances after a selloff in debt markets on Tuesday and Wednesday that pushed the yield on 30-year British government bonds to a 26-year high.
