UK long-term borrowing costs hit highest since 2008 ahead of October Budget

JUST IN: UK 30-year gilt yield hits 5.89%, its highest level since 1998, with long-term borrowing costs at their steepest since 2008 ahead of October's Budget.

Britain now pays more to borrow for thirty years than at any point since 1998. The 30-year gilt yield hit 5.89 percent this morning, and the 10-year is at levels last seen in June 2008, when the financial world was actively on fire. You can see how traders greeted the open here.

The timing is brutal. Andy Burnham faces MPs today for the first time as prime minister, and his Chancellor John Healey delivers his first Budget next month. Every tick up in yields eats the headroom Healey needs for anything voters might actually feel. He's in the US right now telling the G20 that Britain has the fastest growth in the G7. The bond market clearly didn't get the memo.

And this isn't just a British problem. The US, Japan and Europe are all printing multi-decade highs at the same time. One analyst called it red lights flashing, and for once that's not hype. The world's lenders are repricing every government on Earth, and Burnham's Budget just got a lot more expensive to write.

This is Dave King, reporting for HIT.