British government bonds and the pound on the morning of July 3 were recovering losses after a sell-off the previous day. Investors were alarmed by the threat of a possible resignation of the finance minister, who was seen in tears in Parliament, and the arrival of a new, more compromising official willing to increase borrowing. The market reaction led the prime minister to say he had no plans to change the head of the Treasury. However, economists now warn that the government will face difficulties in budget planning and may be forced to raise taxes;

Eurobonds