Original title: What’s causing the UK’s long-term borrowing costs to rise?
What’s causing the UK’s long-term borrowing costs to rise? 5 hours ago Share Save Faisal Islam Economics editor, BBC News Share Save Getty Images There is a lot of noise currently about UK government borrowing costs. The focus has been on what is known as the 30-year gilt yield, which is the effective interest rate of what it would cost the UK government to borrow money over three decades. This rate reached a 27-year high on Tuesday, which some argue is a verdict on economic mismanagement and fiscal credibility. The bond vigilantes are striking, and this is the ultimate harbinger of doom. Is there a link to the mini reshuffle of Downing Street personnel from Number 11 to Number 10 on Monday? For others analysing market moves, it is a pan-European trend, and if anything, a sign of UK growth outperformance, meaning there is less room to cut interest rates. It is worth quickly unpacking what this measure represents. This is about trading on financial markets of a very long-term form of UK