UK 30-year borrowing costs hit highest level since 1998 as bond sell-off deepens
UK government borrowing costs on 30-year debt have climbed to their highest level since 1998, as a sell-off in bond markets intensifies ahead of the upcoming budget.
Written by EGazette’s AI. The facts are drawn from cited sources; the analysis is the AI’s own.
The cost of UK government borrowing over 30 years has risen to its highest level since 1998, as a sell-off in bond markets continues to intensify ahead of the government's upcoming budget statement, according to market data.
The rise comes alongside broader pressure in European bond markets, with France's 10-year bond yield also reaching its highest point since July 2002, and the UK's 10-year gilt yield climbing to around 5.49%, its highest level since July 2007.
Pressure on the Chancellor's fiscal plans
Analysts have described the bond market as showing clear signs of investor caution, with one market strategist characterizing conditions as adding pressure ahead of the budget. The government recently paid its highest yield on a 10-year gilt auction since 1999, underlining the rising cost of government borrowing.
With debt levels already elevated and interest payments consuming a significant share of public finances, sustained high yields could narrow the fiscal room available to the Chancellor when setting out spending plans.
Separately, figures from Nationwide showed house prices fell in September, adding another data point to the broader picture of economic pressures facing UK households and policymakers.
Sources
- UK 30-year borrowing costs hit 6%, highest since 1998, as government bond sell-off intensifies – business live — The Guardian — Business
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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