Background

U.K. borrowing costs, as measured by the yield on short-dated government bonds, rose above levels last seen following Britain’s market-destabilizing “mini-budget” after labor market data showed rising wage growth on Tuesday.

Bond Yields

The yield on two-year gilts hit 4.754% at 10:13 a.m. London time, according to Refinitiv data, surpassing the 4.750% level set on Sept. 28.

Historical Levels

It is the highest level since late Aug. 2008.

Labor Market Data

U.K. annual average wage growth accelerated from 6.6% to 7.2% in the February-April quarter, beating economist expectations.

Conclusion

This is a breaking news story and will be updated shortly.