UK long-dated gilt yields rise to highest since 2014

UK long-dated gilt yields rise to highest since 2014

LONDON, Aug 23 (Reuters) - Yields on 20- and 30-year British government bonds pushed past previous peaks set in June to hit their highest since late 2014 on Tuesday, as a sell-off fuelled by higher-than-expected inflation data last week continued.

Twenty-year gilt yields GB20YT=RR peaked at 2.986%, the highest since September 2014, while 30-year yields GB30YT=RR rose to the highest since November 2014 at 2.914%, both up more than 6 basis points on the day.

Five-year yields GB5YT=RR rose by 10 basis points to 2.490%, the highest since April 2011.

British government bonds have underperformed against German debt, with 30-year gilts offering the biggest yield premium since June 2016 at 143 basis points DE30GB30=RR .

Financial markets expect the Bank of England to raise interest rates by another half of a percentage point at its next meeting on Sept. 15, and see a 29% chance of a three-quarter-point rate rise to 2.5%.
Reporting by David Milliken Editing by William Schomberg