UK long-term borrowing costs hit 27-year high, and pound falls, in pre-budget blow for Labour – as it happened

UK 30-year bond yields rise to highest since 1998 amid worldwide bond market rout'

• Full story: Pressure rises on Reeves as government borrowing costs hit 27-year high

The jump in UK bond yields today shows that Keir Starmer's reshuffle of his Number 10 team has not reassured investors, says Mohit Kumar, chief economist at investment bank Jefferies International.

That reshuffle tooks to be Starmer's attempt to take control of economic policy from the Treasury, with Darren Jones put in charge of day-to-day delivery and Minouche Shafik, the former Bank of England deputy governor, appointed the prime minister's chief economic adviser.

Fiscal concerns are being felt in the UK as well with 30Y Gilts yields close to the highest level since 1998. The recent economic reshuffle in the government did little to ease investor concerns and is seen as undermining Chacellor Reeves.

Tax rises are inevitable, but we are reaching a stage where further tax rises could become counterproductive. So far the government has shied away from difficult decisions on spending cuts which would be required to bring the fiscal picture back in order. We remain negative on the UK long end and continue to favour steepeners along the curve.