Rise in bond yields due to fuel prices and stability concerns will eat away at Rachel Reeves’s fiscal headroom
The UK government’s long-term borrowing costs have hit their highest level since 1998, amid rising fuel prices and concerns about political stability.
The yield – effectively the interest rate – on 30-year UK government bonds (gilts) hit 5.76% at lunchtime on Tuesday, up 0.11 percentage points – exceeding the 27-year high reached last autumn.
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This article was originally published by The Guardian and written by Heather Stewart Economics editor.
Read original article on The Guardian