UK borrowing costs soar above levels of Liz Truss premiership

Stronger than expected job and pay data makes interest rate rise more likely, driving up two-year bond yields

• Analysis: Don't rule out half-point interest rate rise
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UK government borrowing costs have risen above the levels hit during Liz Truss's disastrous premiership, after stronger than expected jobs and pay figures reinforced expectations that the Bank of England will raise interest rates next week.

Andrew Bailey, the Bank's governor, said inflation was taking a lot longer" than hoped to come down, telling the House of Lords economic affairs committee: As I'm afraid this morning's numbers illustrated, we've got a very tight labour market.