UK government faces rising borrowing costs as 10-year gilt yields hit highest level since 2008

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Britain's debt-servicing bill is ballooning at the worst possible time, with a new Budget just weeks away and fiscal headroom evaporating fast.

The UK government is now paying more than 5.2% to borrow money for a decade. That’s the highest yield on 10-year gilts since the financial crisis in 2008, and it’s putting enormous pressure on a new administration that hasn’t even delivered its first Budget yet.

On September 1, the benchmark 10-year gilt yield climbed to 5.21%, while 30-year yields hit approximately 5.89%, a level not seen since 1998.

UK government faces rising borrowing costs as 10-year gilt yields hit highest level since 2008

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