UK borrowing costs rise as Starmer speech fails to dispel investor ‘jitters’

Bond yields creep higher on concerns about potential for political instability and rising inflation

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The cost of government borrowing has crept higher as Keir Starmer’s crucial speech failed to dispel investor “jitters” in the bond markets over political instability combined with fears of rising inflation.

The yield, effectively the interest rate, on the benchmark 10-year UK government bonds (known as gilts) rose eight basis points (or 0.08 of a percentage point) to 5% on Monday.