The rise in long-end Gilt yields to levels not seen since 1998 highlights growing market concerns over the UK's fiscal outlook amidst limited fiscal headroom.
With the October Budget revealing a 1.3 percentage point rise in yields could negate Chancellor Reeves' £15.7 billion fiscal headroom, the UK's financial stability is fragile.
Low demand in the 30-year auction suggests investors are wary, which is compounded by bleak retail sales data indicating only 0.4% growth year-on-year.
Tax hikes to meet fiscal rules appear politically unfeasible, as increasing costs and job cuts threaten consumer spending and ignite concerns of stagflation.
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