UK long-term borrowing costs hit 28-year high

Britain’s long-term borrowing costs climbed to their highest level in nearly three decades on Tuesday, as a global bond sell-off pushed gilt yields sharply higher.

The yield on 30-year UK government bonds reached 5.89%, its highest point since early 1998. Bond yields effectively represent the interest rates governments pay when they borrow over a given period.

Traders were concerned that a fresh rise in oil prices could drive inflation higher. Those concerns added to pressure in bond markets already affected by the broader global sell-off.