UK 30-Year Gilt Yield Hits Highest Level Since 1998

BlockBeats News, September 2nd, the yield on UK 30-year government bonds touched a 27-year high on Tuesday as market concerns about governments' large-scale borrowing and U.S. President Trump's attempt to dismiss Federal Reserve Board members raised global government borrowing costs. London Stock Exchange data shows the 30-year UK government bond yield hit a high of 5.680%, rising about 4 basis points intraday, the highest level since May 1998. The yield on 30-year German government bonds also rose to a 14-year high, following the increase in U.S. Treasury yields.

The borrowing cost for the UK's 30-year bonds is the highest among the G7 countries, reflecting concerns about the country's inflation rate, heavy borrowing levels, and slow economic growth. UK Chancellor of the Exchequer Rishi Sunak is expected to raise taxes in the autumn budget to continue meeting his fiscal goals, which could amplify the challenge of accelerating economic growth. (FXStreet)