UK 30-Year Gilt Yield Hits 27-Year High, Increasing Pressure on Chancellor Reeves
UK 30-year government bond yields climb to 5.698%, highest since 1998, intensifying budget concerns ahead of the upcoming fiscal announcement.
Bond Yields Surge to 27-Year Peak
UK 30-year government bond yields rose to 5.698%, their highest level since 1998, as global bond markets reacted to shifting economic forecasts and volatile US trade policy.
Growing Strain on Government Finances
The rise in long-term borrowing costs adds to the challenge facing Chancellor Rachel Reeves before the upcoming Budget, with markets expecting tax increases to reinforce public finances.
Impact on Debt Servicing and Fiscal Rules
Higher yields increase the cost of servicing government debt, though the Office for Budget Responsibility focuses on 10-year gilt rates when assessing compliance with fiscal rules.
Long-term gilt yields at a near three-decade high deepen fiscal pressures and fuel speculation of tax rises in the next Budget.
This topic was reported by BBC.
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