UK pound falls below $1.23 as government bond yields rise

The pound sterling has fallen below $1.23, down 0.7% against the dollar and 0.6% against the euro. UK government bond yields have risen, with 10-year yields reaching 4.82%, the highest since August 2008. The FTSE 250 index opened lower by 0.6%. The UK faces persistent inflation, leading the Bank of England to adopt a more hawkish stance compared to other countries. Government bond sales are expected to reach nearly £300 billion this year, contributing to rising yields amid stagnant economic growth. This situation has significantly reduced the UK's financial buffer.