LONDON: The premium that 10-year British government bonds offer over German debt rose to its highest since early July as investors continued to worry about the inflationary impact of the fall in sterling since Britain voted to leave the European Union.
The spread between yields on 10-year British yields and the equivalent German debt widened to 97.9 basis points, up more than two points on the day and the widest since July 1, shortly after the June 23 Brexit vote.
British 10-year government bonds suffered their heaviest weekly losses in more than a year last Friday, after the pound fell sharply and British Prime Minister Theresa May highlighted the "bad side-effects" of the Bank of England's low interest rates and bond-buying.
Yields on benchmark 10-year debt on Monday were just below the 1 percent level that they breached for the first time in more than three months on Friday.
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