UK's long-term borrowing costs hit highest level since 1998

UK long-term borrowing costs rose to their highest level since 1998 on Tuesday, with 30-year gilt yields climbing to around 5.76%-5.77%.

Reuters reported the move at 11:23 UTC, and The Guardian said the yield rise was linked to inflation concerns, higher energy prices and political uncertainty ahead of local elections.

The Bank of England's April 2026 Monetary Policy Report had already said longer-term government bond yields were moving higher and that UK financial conditions had tightened. The central bank also published its Q1 2026 Asset Purchase Facility report on Tuesday, providing official context on gilt holdings and the fiscal effects of its bond operations.

The latest move matters because long-dated borrowing costs feed directly into the government's financing conditions and can quickly shape market expectations for fiscal policy. For now, the key question is whether the selloff in long gilts persists through the rest of the trading day.