Rise in UK borrowing costs reverses after cabinet backs Starmer

The London Stock Exchange. Yields rise when bond prices fall, and indicate the rates at which investors are willing to lend to the government. Photograph: Jack Taylor/Reuters

UK borrowing costs dipped back on Monday after rising earlier in the day, as cabinet ministers voiced support for the embattled Keir Starmer.

The yield, or interest rate, on UK benchmark bonds initially increased on Monday as traders reacted to Sunday’s resignation of the prime minister’s chief of staff, Morgan McSweeney, over the decision to appoint Peter Mandelson as ambassador to Washington.