UK government borrowing costs climbed to multi-year highs, adding pressure to public finances as inflation concerns and fiscal uncertainty ahead of the October 28 budget pushed gilt yields higher. Broader strength in global sovereign bond yields also reinforced the move, according to eToro global market strategist Lale Akoner.
LSEG data showed the UK 30-year government bond yield rose as high as 5.904% during the session, its highest level in more than 28 years, while the 10-year yield reached 5.255%, the highest since 2008. Akoner said higher yields may support income, but also increase pressure on mortgages, interest-rate-sensitive equities, and government finances.
UK Bond Yields Hit Multi-Decade Highs, Deepening Public Finance Pressure
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