UK 30-year gilt yield hits 28-year high ahead of October Budget
The yield on 30-year UK government bonds (gilts) rose to 5.89%, the highest since 1998, reflecting global increases in borrowing costs. The 10-year gilt yield also hit its highest since June 2008. These moves are driven by concerns about inflation from the ongoing Iran war, competition from tech firms for long-term borrowing, and worries about state borrowing levels. The higher costs reduce fiscal headroom for Prime Minister Andy Burnham and Chancellor John Healey ahead of the Budget. Global markets have seen similar rises, partly due to US rate hike suggestions. The Chancellor is attending G20 meetings in the USA.
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What we know
Global borrowing costs have risen, with similar highs in the US, Japan, and Europe.
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The rise is ahead of Prime Minister Andy Burnham's first Budget next month.
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The UK market was closed for a bank holiday the previous day.
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The yield on 10-year gilts rose to its highest since June 2008.
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Chancellor John Healey is attending G20 meetings in the USA.
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UK long-term borrowing costs have risen to their highest level since 1998, with the 30-year gilt yield reaching 5.89%, ahead of the new Prime Minister's first Budget.
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