Rising gilt yields pose fiscal challenges for UK government

The UK's long-term government borrowing costs have escalated to levels unseen since 1998, with 30-year gilt yields surpassing 5.24% on Wednesday. This surge is attributed to a global bond market sell-off and concerns over potential stagflation. Contributing factors include the anticipation of prolonged high interest rates and investor apprehensions regarding potential inflationary policies under President Donald Trump's administration. The UK's Debt Management Office recently issued £2.25bn in 30-year notes at a 5.19% yield, with plans for additional sales. These rising yields pose significant...