UK sells £4.25bn gilts at highest yield since 1999

Britain’s 10-year government borrowing costs have reached their highest level since 1999, with a £4.25 billion gilt sale carrying an average yield of 5.38%. Rising yields increase the cost of servicing the country’s nearly £3 trillion debt and leave the government less room to fund priorities such as health care, social care, housing and defense ahead of the next budget. Persistent inflation, elevated public borrowing and global market pressures—including conflict-driven energy concerns—are contributing to the rise. The higher costs could force difficult choices between tax increases, spending cuts and the government’s policy commitments.