UK 10-year gilt yield rises to highest since day of Brexit vote

LONDON: Britain's 10-year government bond yield rose to its highest level since the day the country voted to leave the European Union, according to Reuters data on Monday.

The 10-year gilt yield touched 1.18 percent during early trade, up more than 8 basis points on the day and the highest level since June 23.

Gilt yields have risen sharply over the past couple of weeks as investors anticipate a sharp bout of inflation in Britain, fuelled by the pound's nosedive to all-time lows against a basket of currencies.

While following a similar move in Bunds on Monday, the 10-year gilt still underperformed against its German equivalent. The yield spread between the two hit 108.7 basis points, the highest since the end of June and up about 5 basis points on the day.