UK borrowing costs surge as debt and currency debasement lift global yields

U.K. borrowing costs have surged, with the 10-year gilt yield above 5.2%. Liz Truss said mounting government debt and currency debasement are driving higher global bond yields. Truss said the U.K. is among the major economies most exposed to that pressure. The U.K. 30-year gilt yield is approaching 6%. The 30-year yield was 5.12% when Truss was in office in 2022. The U.S. 10-year Treasury yield has risen above 4.8%. That increase erased the decline that followed Treasury Secretary Scott Bessent's bond-buyback announcement. Bond prices move in the opposite direction to yields. Yields have accelerated across the U.S., Japan, France and Germany. Truss said faster economic growth through supply-side measures and lower spending could maintain public support. She said the situation may have gone too far and could lead to imposed emergency spending cuts.