From Morningstar: 2025-01-08 05:53:11

UK’s long-term government borrowing costs hit highest level since 1998, with yield on 30-year gilts rising above 5.24%. Pressure on Treasury for public spending increases as interest costs rise. Global bond market trends show concerns over stagflation and slower expected interest rate decrease in the UK. Bond sell-off due to fears of inflation and tariff policies by President Trump.

Debt Management Office sells £2.25 billion in 30-year notes with a yield of 5.19%, plans to sell more notes. Bank of England reducing balance sheet through securities sale. DMO expects to sell £296.9 billion of notes in fiscal year 2024-25. Government bonds facing challenges as rates rise and economic uncertainties persist.



Read more at Morningstar: UK Long-Term Borrowing Costs Hit Highest Since 1998