"The yield on 30-year UK government bonds hit 5.76% at lunchtime on Tuesday, up 0.11 percentage points, exceeding the 27-year high reached last autumn."
"Higher government borrowing costs will eat away at the headroom the chancellor, Rachel Reeves, has built up against her fiscal rules."
"Politics is not background noise. In today's gilt market, it is a fundamental part of the investment signal."
"The Bank of England warned of higher than expected inflation last week, as it left interest rates on hold at 3.75%."
The yield on 30-year UK government bonds has risen to 5.76%, the highest since 1998, driven by inflation fears and political uncertainty. Higher borrowing costs threaten the fiscal headroom of Chancellor Rachel Reeves. Analysts are concerned about the implications of upcoming local elections on leadership and fiscal policy. UK bond yields have increased more than those of other economies, influenced by geopolitical tensions. The Bank of England has warned of higher inflation, indicating potential future interest rate adjustments.
Read at www.theguardian.com
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