UK government borrowing costs spike amid tensions in ruling Labour party

U.K. government borrowing costs spiked on Wednesday, amid mounting signs of division within the governing Labour party.

The yield on benchmark 10-year government bonds, known as gilts, was 22 basis points higher at 1:33 p.m. in London.

UK 10 year gilt yield

Tensions have been rising in the ruling Labour party amid the debate on a contentious welfare reform bill, which ultimately passed on Tuesday with steep concessions.

This breaking story is being updated.