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Britain’s long-term borrowing costs have edged lower after Chancellor Rachel Reeves reiterated an “ironclad” commitment to her fiscal rules, but the pound came under further pressure as she set the stage for an income tax hike.

Yields on UK government bonds, also known as gilts, fell as much as six basis points to 4.38%, while the 30-year yield dropped to its lowest level since April at 5.15% at one stage.

Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.

But gilts soon trimmed their rally as questions continued to swirl

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