UK bonds also came under pressure from investors, who sent the cost of financing government borrowing to its highest level since 1998, heaping further pain on Rachel Reeves as the chancellor struggles to prevent her budget plans from being wrecked by a panic on global markets.
The yield – or interest rate – on the benchmark 10-year US Treasury bond rose to 4.516% on Wednesday before slipping back to 4.451%, up 0.14 percentage points on the day. This week it has undergone the three biggest intraday moves since Trump was elected in November. Yields move inversely to prices, so surging yields mean falling prices as demand drops.
