UK two-year gilt yields hit new 15-year high of 5.22%

British two-year government bond yields hit a new 15-year high on Tuesday, part of a broader upward move in government bond yields.

European Central Bank President Christine Lagarde warned earlier in the day that the euro zone faced a lengthy fight against inflation, while U.S. consumer confidence data beat expectations just before two-year gilt yields peaked.

The two-year gilt yield rose as high as 5.220%, its highest since July 2008, up 8 bps on the day, while 10-year gilt yields were 5 bps higher at 4.35%.


Financial markets on Tuesday were pricing in a 70% chance that Bank of England interest rates would reach at least 6.25% by the central bank's December meeting, up from 5% now...