UK gilt yields climbed to 6.07% in Thursday morning trading, their highest level since 1998, as a global bond sell-off spread into equities and pushed London’s FTSE 100 Index down 1.7%. Gilt yields move inversely to bond prices, so the increase raises the cost of government borrowing from financial markets. The move adds pressure on Chancellor John Healey ahead of his inaugural Budget later this month, as Britain faces strained public finances and a growing debt pile. Axel Rudolph, chief technical analyst at IG, said higher yields would increase debt-financing costs, complicate efforts to control borrowing and narrow the Chancellor’s options. A recent fall in oil prices has not delivered lasting relief for bond markets, he added.