Government borrowing costs rise further after Budget

Gilt yields rose again as markets digested Labour’s autumn Budget (John Walton/PA) - (PA Wire)

Government borrowing costs leapt higher on Thursday afternoon with bond yields rising to their highest point in a year, as markets continued to digest a sharp increase in borrowing in Labour’s autumn Budget.

The yield – or interest rate – on a 10-year government bond, an indicator for the cost of state borrowing, hit 4.568% on Thursday afternoon, the highest point since August 2023.