Rachel Reeves says she has ‘iron grip’ on finances as borrowing costs surge

Treasury issues rare second statement in two days after sell-off leaves 10-year bonds at highest level since 2008

• Why rising bond yields are rattling Rachel Reeves

Rachel Reeves took the rare step of issuing a public statement for the second successive day on Wednesday, insisting she has an iron grip" on the public finances, as the sell-off in bond markets intensified.

The cost of 10-year government borrowing hit its highest level since the global financial crisis in 2008, jeopardising the chancellor's chances of meeting her self-imposed fiscal rules.