Yield on 30-year government bonds jumps to 5.88%, the highest since 1998, in bond rout triggered by global factors

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The UK government’s long-term borrowing costs jumped to their highest level since early 1998 on Tuesday as a global bond sell-off gathered pace.

The yield – in effect the interest rate – on 30-year UK government bonds, known as gilts, hit 5.89% as traders fretted about a fresh increase in oil prices driving up inflation.