Pound hits record high against dollar, bonds tumble as tax cut plans spook investors
LONDON — Britain’s financial markets were rattled again on Monday by investors who feared the country’s biggest tax cuts in decades could trigger higher inflation and put public finances at risk.
The pound briefly fell to an all-time low against the US dollar on Monday, before recovering most of its losses by mid-afternoon, down 0.2% to $1.083. The price of UK government debt also fell again on Monday, pushing yields higher. The 10-year government bond yielded 4.10%, up 27 basis points.