Analysts: The UK 30-year government bond yield has risen to a multi-year high, putting further pressure on the government.

Jin10 data reported on September 2 that the yield on UK long-term bonds rose to its highest level since 1998, further increasing the pressure on the Starmer government to take measures to restore market confidence. Amid a global decline in government bonds, the yield on 30-year UK government bonds rose by 3 basis points to 5.67% on Tuesday. The yield on 10-year UK government bonds climbed by 3 basis points to 4.78%. In London’s early trading, the exchange rate of the pound against the dollar fell by 0.7% to 1.3451. Ahead of the autumn budget, rising borrowing costs have become another challenge facing the government. Chancellor Reeves is under pressure to improve the UK’s fiscal position by cutting spending or increasing taxes. However, this could face political resistance, given that the government had to make significant adjustments to welfare reform policies due to opposition from MPs. Jefferies Chief European Strategist Mohit Kumar stated, “Tax increases are inevitable, but we are at a stage where further tax increases could be counterproductive. We remain bearish on UK long-term bonds and continue to prefer a steepening yield curve strategy.”