Britain’s long-term borrowing costs surged to their highest level in nearly three decades on Tuesday, underlining the scale of the fiscal challenge facing Chancellor Rachel Reeves ahead of her autumn budget.
The yield on 30-year gilts climbed to 5.747% in early trading, surpassing the 5.723% peak hit on Monday. The move marks the highest level since 1998 and extends a global sell-off in long-dated government bonds.
Yields on 10-year gilts — the more widely watched benchmark for government borrowing — also rose to their highest level since January.
The rise in gilt yields, which move inversely to prices, reflects growing investor concern about the sustainability of the UK’s public finances. Reeves is preparing her 26 November budget with an estimated £40bn fiscal hole to fill.
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