Bond markets have calmed slightly after an early jump in borrowing costs this morning. The yield on UK 10-year bonds is up 2 basis points (0.02 of a percentage point) at 5.22%, having earlier traded as high as 5.29% (an 18-year high). Yields on 30-year bonds have also eased, up 2 basis points at 5.86%, after trading above 5.91% earlier.
The easing follows Andy Burnham’s first prime minister’s questions today, where he pledged to stick to the UK’s fiscal rules, which may reassure investors that there will be no borrowing splurge in the autumn budget. It also reflects a broader calm in bond markets, with yields on US government debt slightly lower today. That is helped by a drop in the oil price. Brent crude is down 1% today at $93.83 a barrel, having hit $97 this morning.
