Pound, Gilts Rise as Possible Upcoming Interest Rate Hike

Pound, Gilts Rise as Possible Upcoming Interest Rate Hike

U.K. 10-year government bond yields reached the highest in almost eight weeks after Bank of England policy maker Andrew Sentance signaled he voted for a half-point interest-rate rise.

Two-year yields were little changed as the country prepared to sell about 11.5 billion pounds ($18 billion) of debt this week. Financial markets suggest that the Bank of England?s benchmark interest rate could climb to 2 percent next year, Sentance told Sky News yesterday. The U.K. is selling debt this week ranging from 28-day bills to 2040 bonds. The pound weakened against the dollar, retreating from near its strongest since January 2010.

Source: Pound, Gilts Rise as Possible Upcoming Interest Rate Hike