UK mortgage rates rise as gilt yields increase and economic concerns grow

UK mortgage rates are rising as the yield on 10-year gilts reached 4.85% and 30-year gilts hit 5.41%. This increase follows strong US job figures, raising concerns about prolonged inflation and interest rates. Chancellor Rachel Reeves is facing criticism for her economic strategy, with some colleagues expressing a loss of confidence. Despite calls to address the UK's fiscal issues, she is traveling to China to strengthen trade ties. The pound has weakened against the dollar, and economists warn that the government may need to cut spending or raise taxes. The current economic situation has drawn comparisons to the 1976 crisis, raising concerns about potential instability.