UK Government Long-Term Borrowing Costs Reach 28-Year High
Rising inflation bets and political uncertainty are pushing long-term borrowing costs higher, with traders expecting at least two Bank of England rate hikes.
- Britain's 30-year government borrowing costs surged to 5.79%, a 28-year high, influenced by Iran war tensions and a gilt selloff ahead of local elections.
- 10-Year gilt yields rose above 5%, the highest since 2008, pressured by inflation, political uncertainty, and potential Bank of England interest rate hikes.
- Rising yields increase government debt interest payments, limiting Chancellor Rachel Reeves's fiscal flexibility amid energy price shocks and inflation concerns.
- Higher borrowing costs could slow investment, reduce property demand, and delay business decisions, impacting the wider economy.
21 Articles
21 Articles
How UK 30-year bonds reached the highest yield this century
Investors are demanding significantly higher returns to hold British debt as 30-year gilt yields reached levels not seen since 1998 this week. The surge represents a major challenge for the UK Treasury but why did it happen and what does it mean exactly?
UK borrowing costs hit highest level since 1998 as Rachel Reeves faces pressure over Britain's mounting debt
Britain's long-term Government borrowing costs surged to their highest level in nearly three decades on Tuesday afternoon, as fears surrounding the Iran conflict continued to unsettle financial markets.The yield on 30-year gilts climbed by 0.14 percentage points to 5.798 per cent, marking the highest level recorded since 1998.Shorter-term debt also came under pressure, with 10-year gilt yields rising by 0.15 percentage points to 5.122 per cent, …
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
