The government's record-breaking debt issuance plan puts pressure on the market. The yield on the UK 30-year government bond has surged to its highest level since 1998.

Notice, the UK's long-term borrowing costs have surged to their highest level since 1998, with traders selling bonds ahead of the almost record-breaking wave of bond sales expected this year. Before the 2.25 billion (US$2.8 billion) auction of 30-year UK government bonds on Tuesday, yields on equivalent UK bonds rose by 3 basis points to 5.21%. This has increased pressure on UK Chancellor of the Exchequer Rishi Sunak to maintain market stability ahead of a large amount of bond issuance. The Labour government plans to sell 297 billion of bonds in this fiscal year, the second highest on record, putting pressure on gilts as investors worry about the outlook for the country's spiraling debt. Sam Hill, market observer for Lloyds Bank, wrote in a report, "After a busy January and at least for the remainder of this quarter, the burden on gilts issuance, whether in cash or terms, is not likely to be significantly relieved." The prospect of the Bank of England cutting interest rates by less than initially expected is also putting pressure on the pound. Traders have bet that the Bank of England will only cut rates twice this year, compared to bets last month that there would be three or more cuts. Market trends indicate to what extent the UK government is walking a tightrope, trying to assure investors stability and dispel memories of the disastrous 2022 mini-budget under former Conservative Prime Minister Theresa May. In October last year, with warnings from bond vigilantes that bond auction sizes could be larger, bond yields spiked, prompting Sunak to receive warnings from bond vigilante groups.