'Bad news' for Labour as surging gilt yields puts pressure on government's debt management

Worries over state public finances mount

Concerns over the UK government's borrowing plans have intensified, after yields on UK 30-Year gilts rose to the highest level since 1998, putting pressure on its ability to service its debt.

According to data from MarketWatch, the UK 30-Year gilt – an indicator for long-term borrowing costs – is up 21.2% since the beginning of the year, standing at 5.34% at the time of reporting. Yesterday (7 January), the yield hit 5.212%, surpassing the levels seen in the fallout of Liz Truss' Mini Budget back in 2023 and set a new record for the millennium.  The 10-Year gilt is 20.9% higher since 1 January 2025, reaching 4.78% this morning. Higher yields prompt investors to pour into fixed income funds as UK equities break outflow spell Richard Carter, head of fixed interest at Q...