Strategist: Rising UK government bond yields intensify pressure on public finances

PANews reported on September 1 that eToro global market strategist Lale Akoner said the UK government’s borrowing costs have climbed to multi-year highs, further increasing pressure on UK public finances. She said renewed inflation concerns and fiscal uncertainty ahead of the UK budget announcement on October 28 are driving UK government bond yields higher, while broadly rising global sovereign bond yields have also reinforced the trend. LSEG data showed that the UK 30-year government bond yield rose as high as 5.904% during the session, its highest level in more than 28 years, while the 10-year yield rose to 5.255%, the highest since 2008. She said, “Rising yields help boost income, but they put pressure on mortgages, interest-rate-sensitive equities, and government finances.”