UK Treasury Dismisses Market Concerns as Pound Hits Year-Low

As UK financial markets face mounting pressure with gilt yields rising and the pound dropping to a year-low, Treasury Chief Secretary Darren Jones attempted to calm concerns in Parliament, asserting that markets remain “orderly” and demand for UK debt stays robust. The situation has sparked political tension, with opposition parties calling for Chancellor Rachel Reeves to cancel her planned China trip to address market turbulence. However, the government is standing firm, maintaining that market movements are normal and emphasizing the importance of Reeves’ China visit, which aims to reset relations and includes key financial figures like Bank of England Governor Andrew Bailey. The debate highlights growing concerns about Labour’s ability to manage the deficit amid rising borrowing costs.