Pound falls following UK Treasuries...Government "no market intervention"

The British Labor government has started to ease financial market jitters after the pound fell following a sharp drop in British government bond prices.

British media said the pound fell to $1.2234 during the nine-day session local time, the lowest level since November 2023.

The 10-year U.K. Treasury yield rose to 4.93% at one point, the highest since 2008, during the financial crisis.

A rise in bond rates means a fall in value.

Higher government bond rates usually also increase the value of sterling, but both government bonds and sterling fell at the same time, reflecting investor jitters over the UK government's finances.

In addition to recent global inflation concerns, British borrowing costs have surged due to British public fiscal pressures and inflation concerns amid the economic downturn.

Deputy Treasury Secretary Darren Jones said there was no need for emergency intervention in financial markets and explained that the market continued to function in an orderly manner.

It also stressed that government bond rates are driven by a variety of factors at home and abroad, adding that it is normal for a wide range of movements to emerge in global financial markets, including in response to economic indicators.