UK government bond markets rally after Starmer backs Reeves
by Richard Partington Senior economics correspondent from on (#6YD78)
Bond yields fall, reversing a sharp rise on Wednesday sparked by speculation over the future of the chancellor
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UK government bonds have rallied after Keir Starmer backed Rachel Reeves to remain as chancellor for a very long time" despite lingering investor concerns over a multibillion-pound hole in Britain's public finances.
The yield - in effect the interest rate - on 10-year British government bonds, also known as gilts, fell on Thursday morning to trade close to 4.5%, reversing much of the rise on Wednesday sparked by feverish speculation over Reeves's future.
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