Global bond market selling pressure brings collapse of British bonds, and the UK's fiscal situation is of great concern

Britain's 30-year borrowing costs rose to their highest level since 1998, while sterling fell more than 1 per cent on Tuesday, underlining growing concerns among investors about the UK's fiscal strength. Britain's borrowing costs were also pressured by sell-offs in other major bond markets, but Tuesday's sell-off in sterling and gilts showed that the market was focused on the UK's weak fiscal position on the day. Jane Foley, head of currency strategy at Citibank, said that while the expected correction by the Bank of England last month had helped support the pound, the UK would face fiscal risks as the autumn budget approached, which were likely to have a negative impact on the pound.