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The British government sought to quell tumult in UK bond markets on Thursday by vowing to stick to its fiscal rules even as borrowing costs hit their highest level since the financial crisis.
Darren Jones, number two at the UK Treasury, appeared in parliament to answer urgent questions on the markets turmoil after the 10-year gilt yield rose to 4.93 per cent, its highest since 2008, and the pound dropped as much as 1 per cent against the dollar to its lowest for more than a year.
“UK gilt markets continue to function in an orderly way,” Jones told MPs. “There should be no doubt of the government’s commitment to economic stability and sound public finances. This is why meeting the fiscal rules is non-negotiable.”
Jones’ appearance came after Sir Lindsay Hoyle, Speaker of the House of Commons, accepted…
