UK government debt sell-off accelerates as borrowing costs reach post-2008 peak

Britain's benchmark borrowing costs have soared, with the yield on the 10-year gilt reaching 4.82%, emphasizing government debt's vulnerability amid inflation fears.

The 30-year gilt yield climbed to 5.358%, its highest in 27 years, reflecting severe market sell-off as prices fall due to investor skepticism.

Commentators highlight that UK vulnerability stems from energy import reliance, higher private debt returns, and additional borrowing, all impacting gilt prices.

According to Simon French, "the decoupling of UK long bond yields from their most relevant international benchmark - US long bonds - took place in 2022."

Read at Business Matters