UK faces large debt, highest returns since 2001

Britain recorded its highest real yield on inflation-linked bonds in 24 years, as the government issued 20-year bonds worth £800 million with a real yield of 2.412%. Despite the rise in yield, demand exceeded supply by more than 3.9 times, reflecting investors' appetite for higher real returns to hedge against inflation. This comes amid a wave of rising long-term borrowing costs in global markets and poses a challenge for the British government, which is aiming to reduce its reliance on long-term debt to avoid higher future financing costs.

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