Analysis: Investors anticipate that the UK government may increase bond issuance.

Tickmill Group partner Patrick Munnelly said that investors are demanding additional compensation when buying UK government bonds due to expectations of significantly increased government borrowing. He said, "The market expects an increase in UK government bond supply, an expansion of the deficit, and ongoing political risks." Among developed market countries, the UK has the highest government borrowing costs. Data from Tradeweb shows that the yield on 10-year UK government bonds has risen by 3.5 basis points to a recent high of 4.738%. Data from the London Stock Exchange Group shows that the pound has weakened against the euro, with the euro reaching an intraday high of 0.8651 pounds.