US EditionUK borrowing costs rise at fastest pace in G7
UK government debt yields hit 5.68%, the highest since 1998, increasing debt servicing costs and intensifying pressure on Chancellor Rachel Reeves to address a £50 billion fiscal gap.
- On Tuesday, long-term UK government borrowing costs surged to their highest level since 1998 as global yields rose and investors reassessed the United Kingdom's outlook.
- Prime Minister Sir Keir Starmer's Monday reshuffle brought advocates of wealth taxation and sidelined Reeves's deputy, while UK inflationary pressures resurged in recent months, raising gilt yields.
- Sterling slid by over 1% as markets reacted, with investors selling gilts and higher yields pushing up servicing costs on the UK's �2.7 trillion national debt, intensifying pressure on Chancellor Rachel Reeves ahead of the autumn Budget.
- Higher yields raise expectations of tax rises at the autumn Budget, with Chancellor Rachel Reeves limited to a £10 billion cushion as the Office for Budget Responsibility monitors borrowing costs.
- Analysts warned the episode echoes the Truss mini-budget, with Eurizon SLJ Capital's Stephen Jen and Joana Freire cautioning of a 'Starmer Moment' if public finance faith falters.
29 Articles
29 Articles
Labour Government's Popularity Crashes to New Record Low as Markets Ramp Up Borrowing Costs – The Daily Sceptic
The Labour Government's popularity crashed to a new record low of minus-59 yesterday as markets ramped up borrowing costs following Starmer's side-lining of Reeves and drafting in of hard Left economic advisers.
Rachel Reeves Under Pressure As Borrowing Hits 27 Year High
Rachel Reeves is facing additional pressure over her upcoming budget as UK borrowing costs hit a 27-year high. Plus: An interview with newly elected Green Party leader Zack Polanski, and five of the lead organisers of Defend Our Juries have been arrested under the terrorism act. With Aaron Bastani and NoJusticeMTG.…
UK bond yield jumps to its highest level since 1998 at 5.697%; Pound Sterling down 1.5% in a day. Here's why
The United Kingdom's 30-year borrowing costs jumped to their highest level since 1998 amid rising investors' anxiety about the nation's ability to manage its finances. The UK Pound Sterling also dropped 1.5% on Tuesday.
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