Bonds
UK Pays Highest Real Yield in Decades After Market Selloff
- Debt Management Office sells £1 billion of 30-year linkers
- UK government seeks to borrow near-record sum this fiscal year
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The UK paid the most in decades to sell 30-year inflation-linked debt after a punishing selloff that’s seen investors dump British stocks, bonds and the pound.
The interest rate of 2.126% the government must pay on top of inflation for the £1 billion ($1.2 billion) of bonds sold at auction on Tuesday was the highest in data going back to 2006. The last time the so-called real yield for 30-year debt was consistently around this level was more than two decades ago.