Elevated Gilt Yields Pile Pressure on U.K. Public Finances
Dow Jones
Sep 01
1016 GMT - U.K. government borrowing costs climb to multi-year highs, putting more strain on U.K. public finances, eToro global market strategist Lale Akoner says. Renewed inflation concerns and fiscal uncertainty ahead of the U.K. budget on October 28 are contributing to rising gilt yields, which come in tandem with a rise in sovereign bond yields globally, she says. U.K. 30-year gilt yields earlier hit 5.904%, their highest in over 28 years, earlier in the session, LSEG data show. Ten-year gilt yields hit 5.255%, highest since 2008. "Higher yields improve income, but pressure mortgages, rate-sensitive shares and government finances."
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