Gilt yields hit 3% mark as BoE silence disappoints

Update: Benchmark ten-year gilt yields have hit a fresh two-year high of over 3% after the Bank of England opted not to release further ‘forward guidance' earlier this afternoon.

With investors continuing to bring forward their rate rise expectations in spite of the Bank's reassurance that rates will remain low for several years yet, some had expected the BoE to issue a statement alongside today's policy decision. But the decision, which saw the Bank keep QE on hold as expected, was not accompanied by the kind of statement seen in July, when policymakers said expectations of future rate rises were "not warranted". That pushed the yield on 10-year gilts to a two-year high of just over 3%, up from 2.88% as investors increased bets UK rates will rise sooner than ...