UK sells £4.5bn 5-year bonds at 5.036% before Healey's budget
Business
Right before finance minister John Healey's first budget, the UK sold £4.5 billion in five-year bonds at a 5.036% yield, the highest cost for this kind of borrowing since the financial crisis.
There was big demand too: investors wanted over three times more than what was actually offered.
Gilt dealers expect £27bn extra borrowing
Rising global tensions and inflation are pushing up borrowing costs across advanced economies, not just in Britain.
Gilt dealers polled by Reuters last week expect the UK to borrow a bit more this year, with dealers expecting even bigger borrowing by 2027-28, about £27 billion extra, as the DMO targets cheaper shorter-dated financing to keep costs down as rates climb.