Government borrowing costs eased back and the pound strengthened after an initial sell-off sparked by the early release of Office for Budget Responsibility forecasts.

UK government bonds, which are also known as gilts, had come under pressure when the independent fiscal watchdog’s forecasts and Budget measures were released early, but later steadied as markets were relieved at the public finances outlook.

Having initially jumped higher, yields on 30-year UK government bonds later rallied to stand seven basis points lower at 5.25%, while yields on 10-year bonds were four basis points down at 4.46%.

The yield moves counter to the price of bonds, meaning that prices rise when yields fall.

The pound also rebounded after initial weakness, later standing 0.2% higher at 1.32 US dollars and

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