Medium-term borrowing costs for UK government hit 19-year high

The interest rate on 10-year UK government bonds is at its highest level since July 2007, when the global financial crisis was starting to unfold. Photograph: Andy Rain/EPA

Medium-term borrowing costs for the UK government hit a fresh 19-year high on Thursday, as investors continued to offload global bonds amid fears of rising inflation.

Recent dramatic moves in government bond markets have been driven by international factors, but will increase the pressure on John Healey ahead of his first budget as chancellor on 28 October.