UK 30-year Treasury yield hits highest since 1998...Starmer's government emergency

On the 7th, local time, the 30-year interest rate on British government bonds reached its highest level since 1998.

A 30-year government bond worth 2.25 billion pounds (about 4.1 trillion won) sold at an auction at the UK Debt Management Agency (DMO) at an average interest rate of 5.198%, according to Reuters.

This is the highest since May 1998 when it was 5.790%.

A rise in bond rates means a fall in value.

U.K. government bonds have seen interest rates rise particularly sharply ahead of the inauguration of Trump's second administration, with global bond markets under pressure over inflation concerns stemming from the possible imposition of high tariffs.

Over the past month, the interest rate gap with German Treasuries has exceeded 2.5%.

The previous widening was in September 2022 when markets were disrupted by Liz Truss's government's tax cuts, Reuters said.

Investors are worried about the possibility of falling into stagflation (inflation amid a recession) as the UK's sluggish economic growth and price pressures continue.

Rising government bond rates are expected to weigh on the finances of Keir Starmer's Labor government.

As the Labor Party government is reviewing its budget for each department, the possibility of a tax increase is also being discussed as rising borrowing costs weigh on it.