The yield on two-year British government bonds hit their highest levels in over two weeks on Friday, a day after the Bank of England spelled out plans for a “modest” reversal of its huge stimulus to support the economy through the COVID-19 crisis. The two-year gilt yield rose by more than two basis points to a high of 0.117%, its highest since July 22. Rate futures suggested investors were pricing in a first 15 basis-point rise to take the BoE’s benchmark Bank Rate to 0.25% around May next year.
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