UK 30-year borrowing costs hit 6%, highest since 1998, as government bond sell-off intensifies – business live

Worryingly for Paris, the difference between French and German borrowing costs has widened to a 14-year high this morning.

The gap between French and German government bond yields – a market gauge of the risk premium investors demand to hold French debt - was at 127.51 bps, after reaching 128.80 bps, its highest level since June 2012, Reuters reports .

Inflation, deficit and issuance concerns continue to weigh on the bond market.

There is also a buyers strike on the street as investors do not want to step in till we get some form of stability. Hedge Funds have suffered in the latest round of sell-off and do not have the risk appetite to fade the move. Real money, potentially has the risk appetite, but won’t step in till we get some stability.

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