LONDON—U.K. financial markets were rattled again on Monday by investor worries that the country’s largest tax cuts in decades would spark higher inflation and put government finances at risk.
The British pound briefly sank to its lowest-ever level against the U.S. dollar Monday, before recovering most of its losses by mid-afternoon, down 0.2% to $1.083. The price of U.K. government debt also fell again Monday, pushing yields up. The 10-year government bond was yielding 4.10%, up 27 basis points.