UK 30-Year Gilt Yield Hits 5.89%, Pressuring Budget Ahead of Next Month
Updated
Updated · BBC.com · Sep 7
UK 30-Year Gilt Yield Hits 5.89%, Pressuring Budget Ahead of Next Month
3 articles · Updated · BBC.com · Sep 7
Summary
Britain’s 30-year gilt yield climbed to 5.89% last week—the highest since 1998—while the benchmark 10-year yield reached 5.22%, its highest since June 2008.
Those moves raise the government’s long-term borrowing costs ahead of next month’s Budget, increasing pressure on fiscal plans tied to spending and borrowing.
Investors have been pushing yields higher on worries about persistent inflation, heavy state borrowing and large tech companies’ spending on AI.
The selloff is not confined to Britain: government borrowing costs in the US, Japan and Europe have also reached similar highs in recent days.