Long-term borrowing costs in the UK have risen to 6% for the first time in nearly 30 years. Deep-seated inflation and rising government debt burdens have raised concerns, driving up global bond yields. The yield on UK 30-year treasury bonds rose 6 basis points to 6.01%, the highest level since March 1998. The last time G7 countries' yield hit this level for the same period was during the European debt crisis in 2012, when Italian treasury bonds fell. On Thursday, US 10-year Treasury yields also rose to their highest level since 2002. As oil prices rise, increasing the risk that the Bank of England and other developed market central banks may need to drastically tighten policies to contain inflation, the British Treasury bonds are under pressure. This has further increased the pressure on the UK's public finances, and Prime Minister Andy Burnham and Chancellor of the Exchequer John Healy are preparing to announce their first budget since taking office on October 28. Evelyne Gomez-Liechtenstein, a multi-asset strategist at Mizuho International, said that “rising oil prices, stronger European inflation data, and continued sell-off of long-term global assets” are putting pressure on the market sentiment of British treasury bonds.

Long-term borrowing costs in the UK have risen to 6% for the first time in nearly 30 years. Deep-seated inflation and rising government debt burdens have raised concerns, driving up global bond yields. The yield on UK 30-year treasury bonds rose 6 basis points to 6.01%, the highest level since March 1998. The last time G7 countries' yield hit this level for the same period was during the European debt crisis in 2012, when Italian treasury bonds fell. On Thursday, US 10-year Treasury yields also rose to their highest level since 2002. As oil prices rise, increasing the risk that the Bank of England and other developed market central banks may need to drastically tighten policies to contain inflation, the British Treasury bonds are under pressure. This has further increased the pressure on the UK's public finances, and Prime Minister Andy Burnham and Chancellor of the Exchequer John Healy are preparing to announce their first budget since taking office on October 28. Evelyne Gomez-Liechtenstein, a multi-asset strategist at Mizuho International, said that “rising oil prices, stronger European inflation data, and continued sell-off of long-term global assets” are putting pressure on the market sentiment of British treasury bonds.