UK Poised to Pay Highest Borrowing Costs Since 1998
- Britain is set to pay its highest borrowing costs since 1998, with gilt yields reaching 5.83% due to a major government bond sale and a global bond market sell-off.
- The UK Treasury plans to raise up to £5 billion by selling 30-year bonds maturing in 2056, marking a potentially expensive syndicated debt sale.
- Rising inflation, higher energy prices, and government deficits have pushed UK borrowing costs higher, with yields rising faster than any other G7 country recently.
- The Chancellor faces pressure ahead of the October 28 Budget as government debt reaches historic levels and debt servicing costs exceed £7.7 billion monthly.
22 Articles
22 Articles
UK Pays Highest Borrowing Rate Since Records Began
The UK paid its highest borrowing rate on record yesterday, selling £4.25 billion of 30-year gilts at 5.82 per cent. The steepest yield at any sale since the Debt Management Office was set up in 1998, but don’t worry about that… According to the Times, Deutsche Bank told clients the headroom is likely to be…
The British government has paid as high interest on its government bond as ever since the establishment of the government debt administration, which makes the budgeting of the new finance minister more difficult.
Why the government’s debt is growing – current public spending pressures explained
The UK has seen the cost of its bonds rise more quickly than other major economies. Westlight / ShutterstockPressure to make cuts in public spending has intensified in recent weeks, with increased calls on Prime Minister Andy Burnham to find savings urgently. The need to reduce expenditure has become more pressing as the cost of loans used to pay for services has shot up. With the bill on the government’s borrowing rising sharply there is less r…
Continued inflation has increased the cost of long-term loans worldwide, and the rate of interest on British government bonds has also increased as high as it has not since 1998.
UK debt management has placed a 30-year government bond in the volume of £4.25 billion on Tuesday. The yield was 5.8168 percent – as high as no comparable issue since the founding of the financial agency in 1998.
UK poised to pay highest borrowing costs since 1998
The UK is set to pay the highest yield on new debt in nearly 30 years in a sign of the growing economic pressures facing the Chancellor John Healey as he draws up his first Budget. The Debt Management Office is marketing a 30-year bond at 0.75 basis points over the yield of the government’s [...]
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