Debt sell-off accelerates – CITY AM
UK government borrowing costs continued rising on Wednesday, and the value of sterling dropped as investors recalibrated their views on the UK economy.
The yield on the benchmark 10-year gilt, which reflects the cost of borrowing, hit 4.78 per cent on Wednesday afternoon, a post-financial crisis high.
It came after the yield on the 30-year gilt hit its highest level this century yesterday. The yield on the 30-year gilt continued rising on Wednesday afternoon, reaching 5.42 per cent.
The pound also suffered, dropping 1.1 per cent against the dollar to trade at $2.134, its lowest level since April.
Debt sell-off accelerates
The paper says investors are losing confidence in the UK economy as its continues to scrutinise the chancellor’s budget.
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