Chancellor will face more limited fiscal headroom at budget after yield on 30-year bond increases to 5.68%

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Britain’s long-term borrowing costs have hit their highest level in 27 years, intensifying the pressure on chancellor Rachel Reeves before the autumn budget.

The yield, or interest rate, on 30-year UK government debt hit 5.680% on Tuesday morning. That is its highest level since 1998, indicating that it will cost the UK more to borrow from the markets, above the previous 27-year high of 5.649% set in April.