UK issues £4.5bn in gilts at highest yield since 2008 as Budget looms
High borrowing costs squeeze fiscal headroom for Chancellor John Healey
The UK Debt Management Office has issued nearly £4.5 billion in five-year gilts at a yield of 5.04 per cent, the highest annual payment since the global financial crisis, on the eve of Chancellor John Healey's first Budget. The sale underscores the constrained fiscal headroom facing the government, which now spends over £115 billion a year servicing its debts.