Rolling coverage of the latest economic and financial news
Newsflash: British 30-year government bond yields have hit their highest since 1998, intensifying the pressure on the UK Treasury.
The 30-year gilt yield has risen to 5.680% in early trading, over the previous 27-year high set in April.
Yields measure the interest rate which an investor receives for holding a bond, and rise when the price of a bond falls.
This rise in bond yields adds to Rachel Reeves’s headache as she tries to draw up this autumn’s budget. Higher borrowing costs could create a larger black hole to be filled through higher taxes or spending cuts.
