Pound Sterling notes and change are seen inside a cash resgister in a coffee shop in Manchester, Britain, Septem,ber 21, 2018. REUTERS
LONDON, Sept 2 (Reuters) – British government bond yields hit fresh 18-year highs on Wednesday, tracking a broad global sell-off fueled by concerns about rising oil prices and inflation as the Iran war escalates.
The yield on 10-year gilts rose to its highest since June 2008 and was up 4 basis points at 5.268% shortly after 0700 GMT.
The rise in borrowing costs is adding to pressure on the public finances through higher debt servicing costs at a time when new Prime Minister Andy Burnham and his finance minister John Healey are preparing for their first budget next month.
Reporting by Suban Abdulla Editing by William Schomberg
