Pound falls against the dollar and bond yields rise amid concerns over high UK inflation and interest rates

• Reeves faces another week of second-guessing the City

Concerns over the UK government’s borrowing costs were revived on Friday after stronger-than expected US jobs figures triggered volatile conditions in global financial markets.

In an accelerating global bond market sell-off, investors warned that the UK was particularly exposed amid growing fears over stubbornly high inflation and higher for longer interest rates. Almost 700,000 UK homeowners are facing an increase in mortgage costs when their fixed-rate deals end this year.