UK Bond Selloff Sends 30-Year Borrowing Costs Soaring

The UK's 30-year borrowing cost surged to 6% on Thursday due to a global bond selloff, according to Bloomberg. This marks a level last seen in March 1998.

The increase is attributed to investors demanding higher yields as they become less willing to lock up money for decades with low returns, particularly given the current inflation and oil price pressures worldwide.

Analysts told Bloomberg that the ongoing global selloff in longer-maturity bonds is putting additional pressure on gilts despite no significant changes in near-term Bank of England expectations.