In the UK the long -term borrowing costs near the highest level since 1998

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Long -term borrowing costs in the UK are close to its highest levels in this century, as concerns about economic expectations in the country are approaching with the high revenues of the global bonds called by Donald Trump with the American Federal Reserve.

In a step that intensifies pressure on the counselor Rachel Reeves Before the autumn budget, the return on the debts of the UK government, which lasted 30 years, rose to 5.64 percent in early trading on Wednesday-the highest point for four months and less than a level reached in 1998.

The returns later decreased to 5.59 percent.

While the revenues of global bonds increased in the wake of the Trump campaign against the federal reserve movements and German movements to increase debt and spending, Gilles was more difficult than other bonds this month.

The proceeds of the doctrine increased for thirty years, which rise with the low prices of bonds, 0.21 percentage points since the beginning of August, compared to 0.11 percentage points on German factors and 0.03 percentage points for the United States Treasury.

If it continues, the recent increases in the revenue of the doctrine will reduce the Reeves Chamber from 9.9 billion pounds from the spring statement to 5.3 billion pounds, according to Alex Care, an economist in Capital Economics.

He added that the costs of increasing debt service, in addition to the potential cuts of growth expectations by the budget responsibility office, may force the advisor to collect up to 27 billion pounds in its budget to close the hole in public financial affairs.

The bond box managers said that the UK is facing an increasing danger of “stagnation”, as continuous inflation – at work. Shortly less than 4 percent – It makes it difficult for the Bank of England to reduce interest rates to support the growth of reporting.

Robert Dishner, USA, Newperger Berman, said that the step to increase taxes to improve public financial resources is likely to “slow down growing, which may lead to further pressure on the recession issues currently.”

Also, the high revenue places Boy under Increased pressure To slow down the so -called quantitative tightening program (QT) to reduce its public budget, which has expanded due to the purchase of the huge bonds that were conducted in previous financial crises.

The bank reduces its public budget by 100 billion pounds annually, partially, through sales that analysts warn of low sect prices.

Mark Daving, the chief fixed income investment official at RBC Bluebay Asset Management, said investors are “interested in the credibility of the UK’s inflation policy.”

He warned that unless the government was able to spend the spending and the Bank of England stopped, “The black hole will continue to grow, and the risks are a working attack.”

Despite the last long -term debt sales, a 10 -year -old sects, which were the most monitoring factors for long -term borrowing costs, were 4.73 percent on Wednesday, less than 16 years of rise at 4.93 percent. It arrived in January.

The pound, which was a victim of previous concerns about UK debt, has increased by 1.7 percent so far this month against a weaker dollar.

“The bonds that have long been rented everywhere are under pressure,” said Mike Ridel, director of the Fidelity International Fund, said.

He said that Gilts had recently performed the treasury “because the Fed Bank has indicated more discounts, while the Bank of England has been sincere in recent weeks.”

Mashqat markets priced at a price of a quarter of a quarter of only by the Bank of England over the next 12 months, compared to the expected four of the Federal Reserve.