UK Pays Highest Borrowing Rate Since 1998 in 30-Year Bond Sale Amid Public Finance Pressure

The UK has sold £4.25 billion of 30-year government debt (gilts maturing in 2056) at a yield of 5.8168%, marking the highest borrowing cost for any gilt sale since the Debt Management Office was established in 1998. This development, coupled with recent bond market turbulence, is increasing pressure on public finances and has led to a rise in UK mortgage rates, with average two-year and five-year fixed residential mortgage rates reaching their highest levels since June and May, respectively.