Chancellor of the Exchequer Rachel Reeves’s deputy said the gilt market is functioning as normal and underlying demand for UK debt is strong, as pressure grows on the British government amid a rise in borrowing costs and wider market selloff.

By David Milliken and Muvija M LONDON (Reuters) -British financial markets remain orderly and there is no need for authorities to intervene, deputy finance minister Darren Jones said on Thursday after sterling fell to a 14-month low and 30-year borrowing costs hit their highest since 1998.

The Treasury has said UK financial markets are functioning “in an orderly way” despite the pound plunging to its lowest level for over a year after a rout in the bond markets. Government borrowing costs increased further on Thursday morning,