UK 10-year borrowing costs hit highest since 2008 as bond market sell-off continues – business live

Rolling coverage of the latest economic and financial news UK long-term borrowing costs could halve chancellor’s budget headroom The Guardian view on the global bond shock: Andy Burnham should take note Newsflash: UK government borrowing costs have jumped at the start of trading, as the bond market sell-off continues. The yield, or interest rate, on UK 10-year bonds jumped by 4 basis points (0.04 of a percentage point) to 5.268%. Thats the highest since June 2008 (Reuters reports). “The dominant theme as markets open is the renewed escalation between the US and Iran, with attacks on Iranian military and tanker targets raising concerns over further disruption in the Strait of Hormuz. Oil has extended to a six-week high, amplifying inflation concerns and driving another sharp rise in global bond yields “The market rout stepped up a year yesterday and shows no sign of stopping. Governments around the world are feeling the pressure from bond markets, but the situation is particularly acute for the UK, where Andy Burnham’s grand promises about reforming the economy are about to meet the cold reality of high debt levels and rocketing borrowing costs...