Global bond sell-off piles new pressure on UK borrowing costs before budget
by Heather Stewart Economics editor from on (#78KR4)
Rising cost of 10-year gilt to near 19-year high hikes upfront cost of government investment and limits chancellor's room for manoeuvre
A global sell-off in government bonds has put fresh upward pressure on UK borrowing costs, before a tough budget for John Healey next month.
The yield - effectively the interest rate - on 10-year UK bonds, known as gilts, had risen to 5.38% by mid-morning on Thursday, approaching the 19-year high set last week.
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