The government's record bond issuance plan put pressure on the market. The yield on UK 30-year treasury bonds climbed to its peak since 1998

The Zhitong Finance App notes that long-term borrowing costs in the UK have soared to their highest level since 1998, and traders sold bonds before this year's near-record wave of bond sales.

Prior to Tuesday's £2.25 billion ($2.8 billion) 30-year UK Treasury bond auction, UK bond yields climbed 3 basis points to 5.21% over the same period.

The move increased pressure on British Chancellor of the Exchequer Rachel Reeves to keep the market stable until a large number of bonds are sold. The Labour government plans to sell £297 billion in bonds this fiscal year, the second-highest on record, putting pressure on Phnom Penh bonds as investors worry about the future of the country's expanding debt.

Sam Hill, head of market watch at Lloyds Bank, wrote in a report: “After a busy month of January, the burden of issuing bonds in Phnom Penh is unlikely to be drastically reduced in terms of cash or maturity, at least for the rest of the quarter.”

The prospect that the Bank of England will cut interest rates less than initially anticipated also puts pressure on the pound. Traders are betting that the Bank of England will only cut interest rates twice this year, while the bet at the beginning of last month was to cut interest rates more than 3 times.

Market trends show the extent to which the British government is walking a tightrope to try to get investors to stand firm and dispel memories of former Conservative Prime Minister Truss's disastrous 2022 mini-budget. In October of last year, as bond auctions were likely to be larger, bond yields soared, and Reeves had already received warnings from bond activists.