UK borrowing costs hit highest since 2007

UK government 10-year borrowing rate rose 0.06 points to 5.515% by lunchtime in London on 8 October 2026, the highest since July 2007. Like higher interest on a loan, it means costlier borrowing. Investors sold government loans (bonds) around the world, worried rising oil prices will push up prices. 20- and 30-year rates hit levels not seen since 1998.