10-year gilt yields are up over 10 bps to kick start the day, jumping up to 4.54% as traders weigh the situation from earlier here. That's putting fresh pressure on the pound as well with EUR/GBP pushing up by 0.5% to 0.8860 now - its highest since April 2023 - while GBP/USD is also down 0.5% to 1.3125 currently.
UK 10-year gilt yields (%) daily chart
It's all going wrong for Reeves and Starmer, in basically a damned if you do, damned if you don't predicament. Amid mounting political pressures, they look to be abandoning one of their key manifesto pledges - that is to raise income taxes.
And markets are making sure they know what that means as gilts come under heavy pressure towards the final stages this week.
