Pound falls and bond yields rise after UK borrowing soars
This morning’s UK public finances are going down badly in the City.
The pound has dropped by half a cent this morning, to $1.35. That puts sterling on track for its third daily fall in a row, as it drops back from Tuesday’s two-month high.
Government bonds are under pressure too, as traders react to the news that borrowing is £11bn higher than forecast so far this year.
The yield, or interest rate, on 10-year UK gilts (bonds) is up 4 basis points at 4.7% (up from 4.66% last night).
30-year gilt yields have also risen by 4bps, to 5.54%.
Kathleen Brooks, research director at XTB, says today’s public finance data puts the sustainability of borrowing and the size of UK state into…