UK 30-year gilt yield hits highest since 1998
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 f...
By Reuters |
ETMarkets.com
British 30-year gilt yields hit a 27-year high on Tuesday as government borrowing costs around the world were pushed up by worries about big state borrowing and U.S. President Donald Trump's attempts to fire a Federal Reserve governor.
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 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.
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 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.
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