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UK Borrowing Costs Hit 5% Amid Global Market Turmoil

3/28/2026

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Story summary
  • UK government borrowing costs rose above 5%, with the 10-year gilt yield at its highest since 2008 amid a global bond sell-off linked to the Iran war.
  • The United States and eurozone also faced higher borrowing costs, signaling turbulence in global markets.
  • Economists say the Bank of England should tighten policy to address inflation and a weakening economy.