Fears grow of rise in rates

Click to follow
Intense speculation over John Major's political future yesterday led to fears of a sterling crisis while concern deepened that the fall in interest rates was over and they would be forced upwards by early summer, writes Peter Torday.

Share prices slipped and government bond prices dropped in nervous markets which see-sawed from losses to gains and then back to losses. The FT-SE 100 Index of leading UK shares ended the day 31 points lower at 3092.4.

Gilts eventually drew comfort from a Treasury report dismissing fears of higher inflation and ended higher on the day.

Market turmoil, page 37

Market report, page 38