Summary
Long-term borrowing costs in the UK have hit their highest level since 1998, increasing pressure on Chancellor Rachel Reeves before the upcoming budget. The interest rate on 30-year government bonds, known as the yield, reached 5.698%, while the British pound fell over 1% against the US dollar.
Key Facts
- UK long-term borrowing costs are at their highest since 1998.
- The interest rate on 30-year government bonds rose to 5.698%.
- Chancellor Rachel Reeves may face pressure to raise taxes in the upcoming budget.
- The British pound fell more than 1% against the US dollar.
- Global factors, including US trade policy, have affected government bonds.
- The cost of UK government debt has increased due to higher bond yields.
- The UK's Office for Budget Responsibility reviews 10-year borrowing costs to ensure fiscal rules are met.
