UK 10-year gilt yield hits almost 5-month high in wake of ECB minutes

LONDON: British 10-year borrowing costs hit an almost five-month high on Thursday, dragged up by German Bund yields after minutes from the European Central Bank's latest meeting showed officials left the door open to removing its bond-buying pledge.

The 10-year gilt yield touched 1.33 percent at 1201 GMT, up more than 6 basis points on the day and the highest level since February 14, according to Reuters data.

The yield spread between 10-year gilts and the equivalent German Bund slid 3 basis points on the day to 76 basis points.

ECB rate setters meeting last month discussed dropping from their policy message a long-standing pledge to expand or extend the bank's bond-purchase programme if necessary, minutes of the meeting showed on Thursday.

British yields have also been boosted of late by recent comments from Bank of England policymakers who are considering whether interest rates should rise soon.