UK gilt yields spike above 6% as borrowing costs pressure government finances
Long-term UK government bond yields rose above 6%, pushing ten-year yields to 5.49% and weakening the pound, while the FTSE 100 slipped.
The 30-year gilt yield climbed to over 6% after a 12-basis-point jump, and ten-year yields increased by 11 basis points to 5.49%. The British pound fell 0.6% against the dollar, though it gained against the euro amid turmoil in French markets. The FTSE 100 also moved lower. With less than a month until the Budget, Treasury minister John Healey faces pressure to address the rising borrowing costs.
Why it matters
Higher gilt yields raise the cost of financing government debt, affecting fiscal policy and market stability.
In this story
government borrowinggilt yieldspoundFTSE 100budgetJohn Healeyborrowing crisis
