The UK's long-term borrowing costs reached 6% for the first time in almost three decades, as concerns about persistently elevated inflation and a challenging budgetary position continued to mount. The yield on 30-year gilts rose five basis points to 6%, a level last seen in March 1998. This move was part of a global selloff in government debt driven by higher oil and gas prices from an escalation in the Middle East conflict.
US benchmark 10-year debt also rose four basis points to 5.33%, the highest since 2002. Markets are closely watching the Bank of England's response as inflation pressures persist and fiscal sustainability concerns grow.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing