Chancellor is urged to ‘get a grip’ on country’s finances as yield on 30-year bond rises to 5.62%
The cost of UK government borrowing has jumped to near a 27-year high, piling pressure on Rachel Reeves to reveal how she will tackle the deficit in the public finances before the autumn budget.
The yield, or interest rate, on the UK’s 30-year bond rose by eight basis points (0.08 of a percentage point) on Tuesday to 5.62%.
That pushed the UK’s long-term borrowing costs close to a spike in April of 5.66%, when 30-year bond yields reached their highest since 1998.
UK borrowing costs have risen sharply in recent months, increasing the cost of financing UK government debt to more than £100bn a year – almost 10% of the annual budget.
