Reported 1 day ago
The UK's long-term borrowing costs have surged, approaching levels not seen in over 25 years, thereby intensifying the pressure on Chancellor Rachel Reeves as she navigates upcoming bond sales. The yield on 30-year gilts rose to 5.19%, close to 5.21%, due to rising investor concerns after the Labour government announced significant borrowing plans. As investors prepare to absorb up to £6.5 billion in gilt auctions this week, the government's delicate balance in maintaining debt investor confidence is at risk, compounded by warnings from bond markets following the previous Conservative government's financial missteps. Furthermore, rising borrowing costs are impacting UK homeowners, causing a decline in mortgage approvals.
Source: YAHOO