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LONDON DAILY ARCHIVE

UK Financial Markets Hit by Bond Selloff and Political Uncertainty

Concerns over public finances and Chancellor Reeves unsettle investors

02 July 2025 · 23:44 UTC

UK financial markets have come under heavy pressure as government bond yields spiked and the pound weakened amid growing investor unease over the country’s public finances and speculation about Chancellor Rachel Reeves’ future.

Analysts warn that doubts about fiscal strategy and leadership stability risk fueling further volatility and damaging market confidence.