Jenni Reid

Confidence among U.K. firms has tumbled to its lowest level since the market-rocking "mini-budget" crisis of fall 2022, according to a survey by the British Chambers of Commerce.

Economists polled by Reuters forecast a reading of 2.4%, up from 2.2% in November.

U.S. Treasury yields were flat early on Wednesday as investors awaited labor market data and the minutes from the Federal Reserve's December meeting.

The march higher in U.K. government bond yields since the Labour government presented its debut budget plan in October has sparked concern, as borrowing costs rose to breached numerous decade highs.

U.S. Treasury yields were higher Monday as investors looked ahead to key inflation prints.

Treasury yields pulled back early Tuesday after the 10-year yield hit a fresh 14-month high on Monday.

The 10-year Treasury yield was slightly lower Wednesday morning ahead of the release of key consumer inflation data.

U.K. borrowing costs fell sharply on Wednesday, following the release of lower-than-expected consumer inflation prints both at home and in the U.S.

The disappointing retail data adds to the dim economic picture in the U.K. and to the challenges facing Finance Minister Rachel Reeves.