UK government pays highest interest rate on 10-year debt since 1999 at bond auction – as it happened
News Source
•Tue, 29 Sep 2026 15:07:56 GMT
📰 What Happened
Britain's government paid the highest interest rate since 1999 to borrow money for ten years. The news came at a bond auction where the government sold £4.25 billion of debt.
This was one of many events on a busy day for markets. Reports also said UK mortgage approvals fell to their lowest since December 2023, as borrowing costs rose.
🔍 The Backstory
Bonds are how governments borrow money. When investors demand higher interest, it costs the country more to fund public services. The rise came as diesel prices hit a record near £2 a litre and UK consumer credit grew at a record pace.
In the same live blog, Anthropic warned that AI may pose existential risks in its IPO filing. Other news included AstraZeneca's $2 billion cancer deal and a US consumer confidence drop to a 12-year low.
🎯 Why It Matters
Higher government borrowing costs often lead to higher mortgage and loan rates for families. This directly affects what people pay for a home and for everyday credit.
Britain's government paid the highest interest rate since 1999 to borrow money for ten years. The news came at a bond auction where the government sold £4.25 billion of debt.
This was one of many events on a busy day for markets. Reports also said UK mortgage approvals fell to their lowest since December 2023, as borrowing costs rose.
Bonds are how governments borrow money. When investors demand higher interest, it costs the country more to fund public services. The rise came as diesel prices hit a record near £2 a litre and UK consumer credit grew at a record pace.
In the same live blog, Anthropic warned that AI may pose existential risks in its IPO filing. Other news included AstraZeneca's $2 billion cancer deal and a US consumer confidence drop to a 12-year low.
Higher government borrowing costs often lead to higher mortgage and loan rates for families. This directly affects what people pay for a home and for everyday credit.