London (Reuters) – British bond yields are climbing and the Sterling book fell on Wednesday, the day after the government’s decision to return to its social benefits reduction plans and after the appearance of the apparently upset, before the Parliament.

The yield of the state obligation at 10 years old, or Gilt, takes more than 20 base points to 4.66%, investors turning away from British debt. He is on the way to knowing his strongest daily increase since October 2022 and the bond crash caused by the presentation of the budget of the Prime Minister of the time, Liz Truss.

“The yields of the Gilts were increasing, but they started to climb during the question session of the government in Parliament, because Rachel Reeves seemed completely upset,” said Neil Wilson, analyst at Saxobank.

Prime Minister Keir Starmer’s press officer later said that Rachel Reeves benefited from his total support and was upset due to a “personal affair”.

Rachel Reeves has repeatedly stressed his commitment to respect the budgetary rules, limiting the amount of loans from Great Britain.

The Sterling book lost 1% against the dollar and 0.61% against the euro, also amplifying its losses after the intervention of Rachel Reeves in Parliament.

The FTSE 100 index of the London Stock Exchange yields 0.41%.

“It is Rachel Reeves who finds himself in a very difficult situation following a series of flip-flops, which means that the savings that had been planned … (will not be) made,” notes Dani Hewson, head of financial analysis at AJ Bell

“What happened in Parliament today has absolutely destabilized (investors) because the market is more and more worried about the position of Rachel Reeves,” he adds.

(Written by Alun John, Andy Bruce and Johann Cherian; Diana Mandia, edited by Blandine Hénault)

Copyright © 2025 Thomson Reuters