UK 30-year borrowing costs hit 6%, highest since 1998, as government bond sell-off intensifies – business live

Rolling coverage of the latest economic and financial news, as Nationwide reports house prices fell in September

Another bout of turmoil in the bond markets is driving up government borrowing costs across the world, and the UK is in the firing line.

Bond prices are falling, which pushes up the yield – or rate of return – on the debt.

“US bond yields are refusing to budge, with the 10-year yield hitting its highest level since 2007 despite softer-than-expected inflation.

While the latest data has reduced expectations of an October Fed rate hike, investors remain wary that persistent inflation and higher oil prices could keep rates elevated for longer. The dollar is benefiting from that caution, climbing to a three-month high, while the prospect of a December rate increase keeps pressure on bond markets.