8 hrs ago
UK bank stocks slide as 30-year borrowing costs hit highs
UK bank shares fell sharply on Thursday.
This happened as the cost of borrowing money for 30 years reached its highest point since 1998.
Government bonds were being sold, which pushed borrowing costs higher.
Investors were worried about Britain’s finances and rising oil prices.
They were also concerned that inflation could remain high.
Shares in NatWest, HSBC, Barclays, and Lloyds all declined.
Bank leaders are expected to meet Finance Minister John Healey before the budget.
Investors are also watching for possible new taxes on banks.
UK 30-year government borrowing costs reached their highest level since 1998.
The FTSE 350 banks index fell 4.1%, its biggest one-day decline since May 5.
NatWest shares fell 5.2%, HSBC dropped 4.3%, Barclays nearly 4%, and Lloyds 4.4%.
European bank stocks declined as a sell-off in government bonds pushed yields higher.
Investors grew concerned about Britain’s finances, oil prices, inflation, and possible bank taxes ahead of the October 28 budget.
- Who
- UK banks, European bank investors, Finance Minister John Healey, and the leaders of major British lenders.
- What
- UK bank stocks fell as 30-year government borrowing costs reached a 1998 high.
- Where
- The United Kingdom and wider European financial markets.
- When
- Thursday, October 1, 2026, ahead of the October 28 budget.
- Why
- Investors were concerned about Britain’s finances, high oil prices, inflation, and possible taxes on banks.
Key facts
- 30-year borrowing costs
- Reached their highest level since 1998.
- FTSE 350 banks index
- Fell 4.1%, its largest one-day drop since May 5.
- NatWest shares
- Dropped 5.2%.
- HSBC shares
- Dropped 4.3%.
- Barclays shares
- Fell nearly 4%.
- Lloyds shares
- Dropped 4.4%.
- Budget date
- October 28, 2026.
Sources
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