Gilt yields spike and sterling surges as Scotland votes 'no'

The pound reached a two-year high against the euro overnight while yields on gilts and treasuries rose, as Scottish voters rejected independence from the UK and investors swapped safe havens for equities.

In a hotly contested referendum which was the culmination of a two-year battle between politicians, the 'no' campaign won with 55% of the vote to 45%. In reaction, the yield on 10-year gilts rose six basis points to 2.58%, while the 10-year treasury yield climbed three basis points to 2.65% as investors reversed their flight to quality trade. Meanwhile sterling - which had initially jumped to €1.28 against the euro and 0.6% against the US dollar to go through $1.65 - settled up at €1.2761 and $1.6471 respectively. Jeremy Cook, chief economist at currency exchange company World Firs...