STORY-TRÅD·politik

UK 30-year borrowing costs hit 6%, highest since 1998, as government bond sell-off intensifies – business live

Rolling coverage of the latest economic and financial news, as Nationwide reports house prices fell in SeptemberFrance’s 10-year bond yield has hit its highest level since July 2002, Reuters reports, having risen to 4.96% this morning.The bond market is “flashing warning lights”, says Susannah Streeter, chief investment strategist at Wealth Club:“The bond market is adding to the pressure cooker ahead of the UK Budget, with the 10-year gilt yield climbing to around 5.49%, the highest level since July 2007.The warning lights are flashing in a week when the government paid the highest yield on a 10-year gilt auction since 1999, underlining how much more expensive it is becoming to borrow. With debt already high and interest payments eating up a hefty chunk of public finances, sustained yields at these levels could further squeeze the Chancellor’s wiggle room when he sets out his spending plans. Continue reading...