UK 5-yr gilt yield hits highest since 2008 ahead of Budget

The UK Debt Management Office sold £4.5bn of five-year gilts at the highest interest rate since 2008, signaling elevated borrowing costs ahead of the Chancellor's maiden Budget. This reflects market concerns over fiscal sustainability and inflation, complicating the government's fiscal headroom. The development underscores the tightening financial conditions facing the UK as it prepares for potential tax and spending decisions.

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