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UK bond yields soar to 25-year high as investors shun gilt auction

Britain's latest auction of 30-year government debt received the lowest demand since December 2023, it was announced today.

The debt was issued at 5.198% well up on the previous auction's yield of 4.747%.

Earlier, the cost of UK long-term borrowing climbed to the highest level since 1998 ahead of the debt sale.

The yield on 30-year gilts climbed three basis points to 5.21% and has remained just off that level in recent minutes at 5.206%.

Yields on shorter-term debt also were up this morning, including two-year, five-year and 10-year gilts.

The yields in today's auction make Rachel Reeves [pictured] the first chancellor to oversee a bond auction over 5% since Gordon Brown.

Concern that interest rates will come down more slowly than expected were blamed by economists for the poor gilt demand.

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