UK borrowing costs surge
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government bondsGuardian
•The spiralling cost of borrowing spells trouble for Rachel Reeves – but she must hold her nerve | Jonathan Portes
72% Informative
The cost of UK government borrowing is higher than it has been since just before the global financial crisis of 2008 .
The yield on five-year gilts the interest rate the government is paying on the 4.25bn it borrowed today to finance the deficit is about 4.5% , nearly five times what it was a decade ago .
But interest rates have broadly followed US ones upwards since start of 2023 .
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