Thirty-year gilt yields touched a peak of 5.680%, up about four basis points on the day, their highest since May 1998, according to LSEG data.
Germany’s 30-year yield rose to a 14-year high, tracking a climb in U.S. Treasury yields.
British borrowing costs increased. Thirty-year gilt yields reached a high not seen in nearly three decades. Global government borrowing costs also rose. Concerns exist about high inflation in Britain. Heavy borrowing and slow economic growth are factors. Finance Minister Rachel Reeves may raise taxes. This could further challenge economic growth. Germany’s 30-year yield also increased.
British 30-year borrowing costs are the highest among the Group of Seven advanced economies, reflecting concerns about the country’s inflation rate – also the highest in the G7 – heavy levels of borrowing and slow economic growth.
Finance minister Rachel Reeves is expected to raise taxes in her autumn budget in order to remain on course for her fiscal targets, potentially adding to the challenge of speeding up the economy.
