A policymaker at the Bank of England has warned that international investors snapping up UK Government debt could leave the market more vulnerable to volatility.

Catherine Mann, one of the Bank’s nine-strong Monetary Policy Committee (MPC), said overseas investors are playing a “particularly large role” in buying gilts – UK government bonds.

The comments come after recent increases in the yield of the gilts in the face of speculation about the future of Prime Minister Sir Keir Starmer.

The yield on the longer-term 30-year gilt is close to a 28-year-high, having jumped above 5.8% on Tuesday.…