Markets

UK long-dated gilt yields track Treasuries to highest since Jan 5

Published February 17, 2015 Updated February 17, 2015 08:41pm

1 min

By Imad Uddin

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LONDON: British long-dated government bond yields rose to their highest level since Jan. 5 on Tuesday as U.S. Treasury yields climbed on growing expectations that the Federal Reserve could flag a possible interest rate increase as early as June.

Ten-year gilt yields rose as much as 7 basis points on the day to peak at 1.759 percent, a level last seen on Jan. 5, and 20- and 30-year yields also set similar records at 2.316 percent and 2.491 percent .

The spread of 10-year gilts over Bunds hit a three-month high of 138.7 basis points, reflecting the growing divergence in the expected paths of monetary policy for the Bank of England and the European Central Bank.

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