Will bond vigilantes punish Rachel Reeves with a Truss-style market meltdown?

10-year gilt yields have risen in the past month but are within the range of other pre-budget periods

UK government borrowing costs have risen ahead of Rachel Reeves's budget on Wednesday.

Some City investors say the chancellor's preparations for changing her fiscal rules could be contributing to a febrile mood in financial markets, amid fears that up to 50bn in extra borrowing for infrastructure investment could reawaken bond vigilantes betting against Britain. This includes warnings of a buyer's strike" if Reeves handles Labour's first budget since 2010 badly.