MARKET NEWS
UK long-term borrowing costs highest since 1998 ahead of October Budget - BBC
BY Faisal Islam, Economics editor and Emer Moreau, Business reporter
Long-term government borrowing costs have risen to a 28-year high, putting further pressure on Prime Minister Andy Burnham ahead of his first Budget next month.
The yield on a 30-year gilt — a loan to the British government — rose to 5.89% on Tuesday, the highest since 1998.
Borrowing costs in the US, Japan and Europe have hit similar highs in recent days, reflecting investors' concerns about inflation, state borrowing levels and spending levels by large tech companies on AI.
Burnham told the House of Commons his government's "bedrock", as it seeks to tackle the cost-of-living crisis, would be "fiscal responsibility".
