Chancellor and Bank of England governor face criticism during China trip as UK bond yields rise

Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey are currently in China amid rising UK bond yields and economic concerns. Their trip has drawn criticism for lacking key financial leaders and for appearing to undermine central bank independence. UK government bond yields have surged to a 26-year high, raising concerns about the cost of servicing national debt. This situation contrasts with the previous market turmoil in October 2022, which prompted significant intervention from the Bank of England. Reeves is now facing pressure to make deeper cuts to public spending and may need to reconsider her stance on borrowing and taxes. The government is also exploring ways to stimulate growth amid high borrowing costs and a challenging economic environment.