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European bond prices are rising this morning, pulling down government borrowing costs.

The yield, or interest rate, on German 10-year bonds has dropped by four basis points (0.04 percentage points) to 2.519%.

UK 10-year gilts are down almost 8 basis points, at 4.6%, while shorter-dated two-year gilt yields are down four basis points at 3.96%, the lowest in over two weeks.

This follows a recovery in US Treasury prices this morning.

Over the last couple of weeks, bond yields had been rising as prices fell amid a global debt sell-off.

The Financial Times is reporting this morning that the UK government is shifting to shorter-term borrowing to lower its interest bill, and to lift some of the pressure on its tax and spending plans.

Jessica Pulay, head of the UK’s Debt Management Office, told the FT that the DMO is softening Britain’s reliance on long-term borrowing.

Short-term borrowing is typically cheaper than issuing longer-term debt, but it also means a country has to return to the markets more often.