The Guardian's business live blog reports that turmoil in global bond markets has eased somewhat after a fall in oil prices, though the earlier surge in bond yields is still expected to push up borrowing costs for UK households. Rising gilt yields have driven up UK swap rates, the rates banks use to lend to each other, which lenders use as a benchmark when pricing fixed-term mortgages, credit cards and car loans. Analysts warn this could undermine efforts, including those attributed to Andy Burnham, to ease cost-of-living pressures.

The five-year swaps rate rose above 4.52% on Tuesday, its highest level since October 2023, while the yield on UK 10-year government debt briefly hit its highest point since 2008 before easing back as oil prices dropped. Yorkshire Building Society's Tom Simpson noted the recent 0.1 percentage point rise in swap rates over the past week is far more modest than the 0.5 point jump seen over 10 days in March when the Iran war began, suggesting only a modest increase in mortgage rates is likely for now.