Global bond sell-off intensifies, as UK long-term borrowing costs pass 6%

<p>Fears that US borrowing costs are unsustainable drive Britain’s 30-year bond yield to level not seen since 1998</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/oct/01/uk-house-prices-september-mortgage-rates-bonds-stock-markets-manufacturing-latest-news-updates">Business live – latest updates</a></p></li></ul><p>The turmoil in global bond markets intensified on Thursday amid fears that the US deficit is reaching unsustainable levels, helping drive UK long-term borrowing costs to a 28-year high.</p><p>The threat of a renewed round of inflation from <a href="https://www.theguardian.com/business/2026/sep/24/global-bond-sell-off-pressures-uk-borrowing-costs-budget">the persistently high cost of oil</a> has spooked investors, who believe central banks will be forced to raise rates in the coming months to prevent price increases from becoming embedded.</p> <a href="https://www.theguardian.com/business/2026/oct/01/global-bond-sell-off-uk-long-term-borrowing-costs-us-bond-yield">Continue reading...</a>