Borrowing costs for governments around the world have risen to the highest level in decades as investors bet that stubbornly high inflation will force global central banks to leave interest rates higher for longer.
UK 30-year bond yields – which dictate the country’s long-term cost of borrowing – rose to the highest level since 1998 on Wednesday, surpassing the levels seen a year ago in the panic after Liz Truss’s mini-budget. US Treasury yields have climbed to a 16-year high, while EU nations and Japanese government borrowing costs have also risen sharply.
