UK borrowing costs rise as US job data sparks market volatility

UK borrowing costs are under pressure following strong US job figures, which have caused volatility in global markets. The pound fell against the dollar, and UK bond yields rose sharply, reflecting concerns over high inflation and interest rates. Nearly 700,000 UK homeowners are set to face increased mortgage costs this year. The rise in UK government bond yields has reached levels not seen since 1998, driven by both global market trends and domestic economic worries. The UK Treasury is reportedly considering cuts to public services to adhere to fiscal rules amid rising borrowing costs. Updated economic forecasts from the Office for Budget Responsibility are expected in March, which may influence future fiscal decisions.