UK borrowing costs hit October 2012 high, passing 2.5 per cent

Borrowing costs have been rising their morning, implied by the yields on UK 10-year gilts, and have passed 2.5 per cent. That's their highest level since October 2012.

Last week's Federal Reserve announcement has seen an escalation in fears of Fed tapering - a reduction in the rate at which the Fed's balance sheet is expanded - causing yields on government bonds in other countries to rise.