[UK Bond Yields Surge, Britain to Issue Government Bonds at Highest Borrowing Costs Since 1998] Driven by a global bond sell-off that has pushed yields higher and strained government finances, the UK is set to issue government bonds at the highest borrowing costs since at least 1998. According to informed sources, the UK is issuing benchmark-sized government bonds maturing in January 2056 at a yield approximately 0.75 to 1 basis point higher than the 2055 bond yield. This will mark the highest yield for any government bond issuance since the establishment of the UK Debt Management Office in 1998. The impact of the global bond sell-off on UK government bonds has been the most severe among major developed economies in recent weeks, with UK bond yields hovering near multi-decade highs. The issuance, expected to be priced later on Tuesday, is a reopening of the £5.9 billion bond initially issued in May 2025 at a yield of 5.405%. RBC Capital Markets strategist Meghum Mushtic stated that the issuance is expected to raise up to £5 billion.