UK 30-Year Borrowing Costs Hit Fresh 27-Year High

The yield on the UK's 30-year gilt surged to 5.747% on Wednesday, surpassing yesterday's high of 5.723% and reaching its highest level since 1998.

This increase is part of a broader global sell-off in long-dated government bonds and underscores the significant fiscal challenges facing Chancellor Rachel Reeves.

The relentless rise in yields intensifies pressure on the Chancellor to implement spending cuts or tax increases in the upcoming November budget to assure the Office for Budget Responsibility, the UK's fiscal watchdog, that the government is adhering to its fiscal rules.