UK 30-year government borrowing costs hit a multi-decade high on 1 October 2026, with the yield on the UK 30-year gilt reaching 6.029% in morning trading. That marks the highest level since January 1998. The 10-year gilt yield also rose to 5.510%, its highest since July 2007.<\/p>\n Below, we\u2019ll cover what happened and why it adds pressure to UK business costs.<\/p>\n The rise in gilt yields from October 1 came amid wider pressure across global bond markets, while the FTSE 100 closed 1.68% lower (Reuters).<\/p>\n According to Reuters, this multi-decade high reflects concerns about the UK\u2019s inflation outlook and overall fiscal position. Dependence on imported energy is another concern, as higher energy prices can keep inflation elevated and strengthen expectations that interest rates will remain higher for longer.<\/p>\n Markets on October 1 were also pricing in the possibility of another Bank of England rate increase in November or December, followed by another move by February.<\/p>\n The rise in UK gilt yields is part of a global bond sell-off. Government borrowing costs across the US, France, Germany and Japan have also risen to multi-year or multi-decade highs according to Reuters.<\/p>\n Bond markets don\u2019t move in isolation, and yield changes often coincide with movements across currencies, equities and commodities. Market platforms such as\u00a0Trade Nation let users follow pricing across asset classes, helping place developments in the gilt market in a broader financial context.<\/p>\n![\"\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/10\/pexels-jakubzerdzicki-27641095.jpg\")
\n<\/figure>\nUK 30-Year Gilt Yields at Their Highest Since 1998<\/h2>\n
The Global Bond Sell-Off and Soaring UK Borrowing Costs<\/h2>\n