The sharp move points to higher borrowing costs for the Treasury and adds pressure on Reeves as fiscal constraints tighten.
UK 3-year gilt yields rose sharply to 4.463% from 4.062%, increasing the government's borrowing costs. The move implies a steeper bill for the Treasury and adds fresh pressure on Reeves as policymakers contend with a tight fiscal backdrop. Rising gilt yields typically signal investors are demanding higher returns to lend to the government, which can complicate budget planning and debt servicing.