UK 30-year borrowing costs hit highest since 1998 amid oil price surge and political uncertainty – as it happened

Long-term UK borrowing costs hit 28-year high on expectations of higher inflation, and speculation that local elections could prompt leadership challenge Full story: UK’s long-term borrowing costs hit highest level since 1998 HSBC profits fall amid $400m fraud-related charge and Iran war Australia hikes interest rates to 4.35% in blow to mortgage holders The UK government’s long-term borrowing costs have hit their highest level since 1998, amid rising fuel prices and concerns about political stability. The yield – effectively the interest rate – on 30-year UK government bonds (gilts) hit 5.77% at lunchtime on Tuesday, up 0.13 percentage points – exceeding the 27-year high reached last September. Yields have been rising across leading economies amid renewed fears over rising inflation, after US efforts to escort ships through the strait of Hormuz prompted Iranian reprisals. But the UK has been hit particularly hard by higher borrowing costs since the onset of the conflict – with some investors blaming uncertainty about the outlook for Keir Starmer’s government. Higher government borrowing costs will eat away at the headroom the chancellor, Rachel Reeves, has built up a