Why UK borrowing costs have hit highest level since 1990s

• UK long-term borrowing costs, specifically 30-year gilt yields, have surged to their highest level since 1998, reaching 5.798 per cent on Tuesday.
• This increase signifies higher borrowing costs for the Government, placing additional strain on the Chancellor's spending capabilities.
• The rise is attributed to growing concerns over inflation, potentially driven by spiking energy costs from the conflict in Iran, and political uncertainty ahead of local elections.
• Financial markets now anticipate the Bank of England will implement at least two interest rate hikes in the coming months, despite maintaining the current rate last week.
• The yield on 10-year gilts also increased to 5.122 per cent, though it remains below recent peaks.

IN FULL

UK long-term borrowing costs rise to 28-year high