Investors are demanding sharply higher yields on government bonds, threatening to upend the Labour Party’s plans to reinvigorate a stagnant British economy.

Governments around the world are uncomfortably watching their borrowing costs rise, following the lead of the U.S. Treasury market. But even in a global rout in bonds, Britain stands out.

British government bonds, known as gilts, are suffering a particularly harsh sell-off, as investors recoil from the country’s low economic growth, stubborn inflation and high debt levels. The yield on 10-year gilts, the benchmark rate, reached 4.9 percent on Tuesday, the highest since 2008, while yields on 30-year bonds were the highest since 1998.

The surge in borrowing costs puts the British government’s plan to revive economic growth, by allocating more money for public services and greater investment, at risk less than three months after it was announced.

“At a time when yields are rising everywhere, global investors are looking at the

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