British borrowing costs reach multi-decade highs amid global bond selloff
British gilt yields reached fresh multi-decade highs as oil prices surged following attacks on Gulf shipping and concerns over hurricane disruption to US oil production.
London, United Kingdom. British long-term borrowing costs reached fresh multi-decade highs this week amid a global bond selloff driven by sharply higher oil prices. Attacks on shipping in the Gulf and concerns that a hurricane will disrupt US oil production fuelled the rise in oil prices.
Gilt yields reach new highs
Ten-year gilt yields rose to 5.527 per cent, their highest level since July 2007. They increased by more than 7 basis points on the day, surpassing the previous high of 5.51 per cent set last week.
The ten-year maturity accounts for much of Britain’s new borrowing.
Twenty-year and 30-year gilt yields reached their highest levels since early 1998, at 6.00 per cent and 6.05 per cent respectively. Both rose by around 7 basis points, in line with US Treasury yields.
Oil prices rise sharply
Brent crude prices jumped 5 per cent on Thursday to $105 a barrel, their highest level since September 29.
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