Yield rises above peak reached when Liz Truss’s mini-budget in 2022 caused turmoil in markets

The UK government’s long-term borrowing costs have reached the highest level since 1998 amid investor concerns over Britain’s sluggish growth prospects and stubbornly high inflation.

The yield – in effect the interest rate – on UK 30-year government debt rose by as much as four basis points to 5.22% on Tuesday, above the peak reached after Liz Truss’s mini-budget in 2022 caused turmoil in financial markets, to hit the highest level in 27 years.