Concerns over the UK government’s borrowing costs were revived on Friday after stronger than expected US jobs figures triggered volatile conditions in global financial markets.
In an accelerating global bond market sell-off, investors warned that the UK was particularly exposed amid growing fears over stubbornly high inflation and higher for longer interest rates.
Markets are no longer fully pricing in two Bank of England base rate cuts in 2025 and research out on Friday found that almost 700,000 UK homeowners are facing an increase in mortgage costs when their fixed-rate deals end this year.
At the end of a turbulent week in global markets, bond yields rose sharply for governments worldwide, before falling back, after the last jobs report of the Biden administration showed the US labour market grew strongly in December.
The number of new jobs added in the world’s largest economy accelerated to 256,000, up from 227,000 in November,…
