UK 10-Year Gilt Yields Top 5% After May 7 Local Elections

2 articles · Updated · The Currency · Jun 4

UK borrowing costs have climbed across the entire yield curve since the early May local elections, pushing 10-year gilt yields above 5% and 30-year yields to just under 6%.
A 1 percentage-point rise in 10-year gilt yields adds about £30 billion to fiscal costs over the next four years, enough to erase Chancellor Rachel Reeves' remaining fiscal headroom.
The move matters because that four-year window broadly covers the rest of the current parliament, tightening budget constraints as the government faces the post-election market reaction.