UK 30-Year Gilt Yields Hit 5.807%, Highest Since 1998

UK long-term borrowing costs reached their highest level since 1998 on Tuesday as yields on 30-year government bonds, known as gilts, climbed to 5.807 percent, up 13 basis points in morning trading. The surge coincided with weakening sterling and falling stock prices amid mounting pressure on Prime Minister Keir Starmer's leadership following his party's poor performance in local elections last week.

The benchmark 10-year gilt yield also rose 11 basis points to 5.11 percent, reflecting investor concerns over political instability. Higher yields signal falling bond prices and increased costs for the government to borrow from financial markets. Sterling declined 0.6 percent to 1.352 dollars and 0.2 percent to 1.152 euros, while the FTSE 100 index dropped more than 1 percent at the open before settling 0.5 percent lower at 10,216.15. Rising crude oil prices, up 2 percent to over 106 dollars a barrel amid stalled US-Iran negotiations, added to the downward pressure on equities.

Starmer faced intensifying calls to resign, with nearly 80 Labour lawmakers publicly urging him to step down and ministerial aides quitting in protest. Senior figures, including Foreign Secretary Yvette...