UK Long-Term Borrowing Costs Hit Highest Since 2008 Ahead of October Budget

UK long-term borrowing costs rose to their highest level since 2008, with the yield on a 30-year gilt reaching 5.89%, as Prime Minister Andy Burnham prepares for his first Budget next month, according to BBC. The benchmark 10-year gilt also climbed to its highest rate since June 2008, adding pressure on Chancellor John Healey and reducing the government’s fiscal headroom. BBC reported that investors are worried about inflation linked to the Iran war, competition from major tech firms for long-term borrowing and elevated state borrowing levels. Downing Street said fiscal discipline is the “bedrock” of Britain’s economic stability and national security, while the prime minister’s spokesperson said the government would meet its fiscal rules with a buffer against uncertainty.