Long-term borrowing costs in the UK have surged to a 28-year high, with the yield on 30-year gilts reaching 5.89%, the highest since 1998. This increase comes as global market interest rates rise, influenced by inflation concerns linked to the ongoing Iran war and competition for long-term borrowing from major tech firms.
As borrowing costs soar, watch for potential shifts in government spending priorities in the upcoming Budget. The Chancellor's ability to implement consumer-friendly measures may be constrained, impacting public services and economic support during rising inflation.