UK borrowing costs ease as bond market calms
30-year gilt yields slip from highest since 1998 amid global bond market turmoil and central bank commentary.
UK Long-term Borrowing Costs Decline
UK 30-year gilt yields eased to 5.55% on Friday, down from Wednesday’s 5.75%, their highest level since 1998.
Global Bond Markets Under Pressure
Yields on long-term government bonds have risen across developed markets amid geopolitical tensions, fiscal concerns and trade uncertainties. German, French and Dutch 30-year yields reached their highest since 2011, while US Treasury yields hit over 5% before easing back to 4.88% after weaker job openings data.
Bank of England Perspective
Bank of England governor Andrew Bailey told MPs it was "important not to focus too much" on 30-year yields, noting that UK funding largely hinges on shorter maturities. He added there is "considerably more doubt" over the timing and pace of future rate cuts.
Factors Driving Yield Moves
- High government borrowing
- Geopolitical risks
- US trade policies under President Trump
- Market concerns over central bank independence
Market calm and central bank guidance have helped long-term UK borrowing costs recede from multi-decade highs, but uncertainty remains over future interest rate paths.
This topic was reported by BBC News.
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