UK Sells £4.25 Billion of 30-Year Debt at Record 5.8168% Yield
Updated
Updated · The Guardian · Sep 8
UK Sells £4.25 Billion of 30-Year Debt at Record 5.8168% Yield
2 articles · Updated · The Guardian · Sep 8
Summary
£4.25 billion of UK gilts due in 2056 sold at a 5.8168% yield, the highest for any gilt auction since the Debt Management Office was created in 1998.
That rate topped the 5.4047% paid on the same maturity in May 2025 after last week’s bond sell-off drove 30-year UK yields to their highest level since 1998.
Higher borrowing costs threaten to erode the government’s fiscal headroom, adding pressure on Chancellor John Healey to stay within budget rules.
The sell-off has been fueled by inflation fears, worries over loose public spending and competition from AI companies issuing debt to finance data-centre expansion.