politics
UK borrowing costs rise and pound falls as leadership drama continues
Key takeaways
- Rachel Clun Business reporter EPAUK government borrowing costs have risen and the pound has fallen as the battle for the Labour leadership took another twist with Andy Burnham's decision to fight a by-election.
- While other European government borrowing costs also rose, the UK movements have been greater, which analysts said had been fuelled by market concerns that a Burnham-led government would increase borrowing.
- The 10-year bond yield - effectively the interest rate charged to the UK government for a 10-year loan - rose to 5.11% on Friday from 4.99% at the start of trade.
Why this matters: political developments that affect policy direction and public trust.
Rachel Clun Business reporter EPAUK government borrowing costs have risen and the pound has fallen as the battle for the Labour leadership took another twist with Andy Burnham's decision to fight a by-election.
While other European government borrowing costs also rose, the UK movements have been greater, which analysts said had been fuelled by market concerns that a Burnham-led government would increase borrowing.
The 10-year bond yield - effectively the interest rate charged to the UK government for a 10-year loan - rose to 5.11% on Friday from 4.99% at the start of trade.
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