The UK is set to issue government bonds at the highest borrowing cost since at least 1998, as a global bond selloff drives yields higher and pressures public finances. The benchmark January 2056 gilt is being marketed at about 0.75 to 1 basis point above the yield on the 2055 bond. The sale, expected to price later Tuesday, is a reopening of a £5.9 billion bond first issued in May 2025 at a 5.405% yield and could raise up to £5 billion, according to RBC Capital Markets strategist Megum Muhic. UK bonds have been among the hardest hit across major developed markets in recent weeks. The 30-year gilt yield stood at 5.83% on Tuesday after touching its highest level since May 1998 last week.