UK’s cost of borrowing on international markets overtakes Greece and Italy

Five-year British government bonds fall dramatically as traders price in higher risk of default on debt

• Bonds: why are yields rising and why does it matter?

Britain's cost of borrowing on international money markets has jumped above the rates paid by Greece and Italy as traders priced in a higher risk of default on UK government debt.

After frantic selling since Kwasi Kwarteng's mini-budget last Friday, the five-year UK government bonds suffered a dramatic fall in value, which had the effect of doubling the interest rate on the debt since August.