The UK’s medium-term borrowing costs rose above those of Italy and Greece, the two weakest members of the eurozone. The UK 5-year bond yield rose 4.535% on Monday, according to TradeWeb. Yields on papers of the same maturity in Italy and Greece were less than 4% respectively. Yields advance when bond prices fall.
In recent years, interest rates on Italian or Greek debt have been among the highest in the eurozone, due to concerns about debt levels. The yield on the UK’s 10-year bond is still lower than that of Italy and Greece, but the gap has narrowed sharply in recent days.
