UK 10-year gilt yields hit 5.21%, the highest since 2008, piling pressure on the Burnham government ahead of its first Budget on October 28.

G7 bond yields are hitting multi-decade highs, pushing annual debt costs past $1 trillion in the US and straining budgets from London to Tokyo.

The rate demanded by investors to buy UK debt has been driven up by persistent inflation, high borrowing levels and political instability.

Higher rates on the bonds will therefore mean that it costs UK more in order to borrow money

UK government bond yields climbed to fresh 18-year highs as a global sovereign debt selloff intensified amid rising oil prices and renewed inflation concerns. Higher borrowing…