UK 10-year borrowing costs rise to 19-year high after oil prices jump

LONDON, Oct 8 (Reuters) – British long-term borrowing costs hit fresh multi-decade highs on Thursday as part of a global bond selloff driven by a sharp rise in oil prices triggered by attacks on shipping in the Gulf and concerns that a hurricane will disrupt US oil production.

Ten-year gilt yields – around the maturity that accounts for much of Britain’s new borrowing – increased to their highest since July 2007 at 5.527%, up more than 7 basis points on the day and pushing past a previous high of 5.51% set last week.

Twenty-year and 30-year gilt yields rose to their highest since early 1998 at 6.00% and 6.05% respectively, also up around 7 bps in line with US Treasuries.

Brent crude oil prices jumped 5% on Thursday to $105 a barrel, their highest since September 29.

(Reporting by David Milliken; editing by Suban Abdulla)

Brought to you by www.srnnews.com

Click here to read the full article