UK 30-year bond yields hit their highest level since 1998

The yield on 30-year UK government bonds hit a 27-year high on Tuesday as concerns about massive borrowing by governments and US President Donald Trump's attempts to sack Federal Reserve governors pushed up borrowing costs for governments around the world. The yield on 30-year gilts hit a high of 5.680 per cent, rising about four basis points in the day to its highest level since May 1998, according to London Stock Exchange data. Germany's 30-year bond yield also rose to a 14-year high, following US Treasury yields higher. Britain's 30-year borrowing costs are the highest in the G7, reflecting concerns about the country's inflation rate, heavy borrowing levels and sluggish economic growth. Chancellor of the Exchequer Reeves is expected to raise taxes in the autumn budget to continue meeting his fiscal targets, which could add to the challenge of accelerating economic growth.