UK gilt yields hit 27-year high prompting calls for new savings bonds

UK gilt yields have reached their highest levels in 27 years, making borrowing more expensive for the government. Ten-year gilt yields are now at 4.8%, up from 3.8% last year, while 30-year yields are at 5.36%, compared to 4.42% previously. The rising costs are attributed to a combination of global interest rate adjustments and domestic economic concerns. The government faces challenges in funding public services and stimulating growth due to high debt levels and investor hesitance. A proposed solution is to create "Back Britain Bonds" for UK savers, offering guaranteed returns. This would allow the government to tap into domestic savings instead of relying on international investors, potentially stabilizing the economy and improving public finances.