UK government borrowing costs have risen in reaction to reports the chancellor will not increase income tax in the upcoming Budget.
The interest rate on 10-year government bonds, known as the yield, jumped to 5.56% from 5.44%, indicating the cost to government if it chose to borrow over this length of time.
Yields on 20- and 30-year gilts also rose by a similar amount in early trading.
Governments borrow money from investors by selling bonds – known as gilts – which is a loan the government promises to pay back at the end of an agreed time.
