UK government long-term borrowing costs have eased after reaching their highest level since 1998 earlier in the week.
The interest rate on 30-year government bonds, known as the yield, slipped to 5.57%, dropping from a high of 5.75% on Wednesday. Analysts said a fall in US borrowing costs had a knock-on impact on UK bonds.
Although bond yields have been rising globally recently, there have also been market concerns about UK government finances.
However, Bank of England governor Andrew Bailey said on Wednesday that it was “important not to focus too much” on longer-term bond yields.
He told the Treasury Committee that interest rates had been rising “across the developed world”.
The UK was not alone in seeing borrowing costs rise earlier in the week, with yields on 30-year German, French and Dutch bonds climbing to their highest since 2011.
In the US, 30-year Treasury bond yields rose to their highest in more than a month.
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