The UK’s 30-Year Government Bond Yield has Crossed 6%, its Highest Level Since 1998, which Means Investors are Demanding a Much Higher Return to Lend Britain Money Over the Long Term
By LauraAboli
The UK’s 30-year government bond yield has crossed 6%, its highest level since 1998, which means investors are demanding a much higher return to lend Britain money over the long term.
This matters because, as the government takes on new debt and refinances old borrowing, more of our money goes towards interest payments, leaving less for public services and increasing pressure for higher taxes, spending cuts or yet more borrowing.
Higher borrowing costs also filter through to mortgages and business loans, squeezing households, discouraging investment and weakening an economy that already feels stretched to its limits.
The rise is part of a wider global bond sell off, but Britain’s exposure is serious, because the more dependent we become on borrowing, the more power financial markets have over what our government can afford to do.
And as always, we are the ones who end up paying.
