UK government pays highest interest rate on 30-year bond since 1998
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- The UK Treasury paid 5.82% to borrow £4 billion through a 30-year bond, the highest rate for such borrowing since 1998.
- Rising bond yields threaten to eliminate at least half of the £24 billion budget headroom John Healey had expected.
- The sale highlights fiscal pressure on the chancellor amid a global sell-off in government bonds.
The UK government paid 5.82% to borrow £4 billion for 30 years on Tuesday, the highest interest rate it has paid on a bond of that maturity since 1998.
The result underlines the fiscal pressure facing Chancellor John Healey. Higher borrowing costs threaten to wipe out at least half of the £24 billion of headroom he had expected to have for his budget.
The increase echoes a global sell-off in bond markets, which has pushed up yields, or interest rates, on government borrowing across major markets.
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Originally published by The Guardian. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.
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