UK Long-Term Borrowing Costs Hit 28-Year High Amid Global Bond Sell-Off

The UK government's long-term borrowing costs have reached their highest level in over two decades. The yield on 30-year UK government bonds, known as gilts, has hit 5.89%, while ten-year gilt yields are at 5.25%. This is the highest level since the global financial crisis of 2008.

The bond sell-off was driven by international factors, including higher oil prices and inflation concerns. Japanese 10-year yields also reached their highest level since the 1990s amid expectations that the Bank of Japan will raise interest rates to control inflation.

Finance ministers and central bankers from the G20 major economies are meeting in North Carolina to discuss the global economy, with the US Treasury secretary hinting that Japanese policymakers could raise interest rates. The UK government's borrowing costs are expected to increase if these trends continue, which would have implications for Chancellor John Healey's budget.