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LONDON DAILY ARCHIVE

Britain Faces Bond Market Showdown Over Borrowing Costs

Investors question government’s fiscal credibility

12 July 2025 · 00:49 UTC

Britain is bracing for renewed tension with bond markets as investors grow increasingly wary of the government's rising borrowing costs.

Analysts warn that higher yields reflect skepticism over fiscal policy and could increase the cost of financing debt, putting pressure on the Treasury ahead of key budget decisions.