The cost of UK government borrowing rose again on Wednesday as the Bank of England (BoE) confirms it will stop buying gilts on Friday as previously announced.
The 20-year gilt yield—the return investors get from UK government bonds—rose above 5 percent for the first time since Sept. 28, and the 30-year gilt yield also passed 5 percent on Wednesday morning.
It comes as pension funds were told they have three days to sort out their problems before the BoE stops its emergency intervention.
The central bank, which had been set to sell gilts it bought during the COVID-19 pandemic, launched a temporary programme to buy gilts on Sept. 28 after a plummet in gilt value threatened to collapse pension funds and send gilt prices on a further spiral….