The rise in borrowing costs is a reflection of market dissatisfaction with the Budget's significant spending increases, suggesting investors are cautious about the UK's sovereign debt.
Chancellor Rachel Reeves' budget announcement of nearly £70 billion in additional spending funded by increased taxes has raised concerns among analysts about sustainable borrowing.
Analysts indicate that the bond yield increase suggests the market is not enthusiastic about absorbing more UK sovereign debt, highlighting potential challenges for future government financing.
The recent rise in yields mirrors a broader global trend but also specifically reflects the UK's economic adjustments following the latest fiscal policies set out in the Budget.
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