Gilt yields soar past Mini Budget levels on UK wage growth jump

Up 0.38 percentage points to 4.85%

Short-term gilt yields have soared above levels seen in the wake of Liz Truss’ Mini Budget following the largest wage growth rate seen outside the coronavirus pandemic.

Two-year gilts rose 0.38 percentage points to 4.85%, according to data from MarketWatch, past the 4.64% peak last seen in the aftermath of the Mini Budget on 27 September.  Longer-dated gilts have not yet surpassed Mini Budget levels - the 10-year gilt is up 0.56 percentage points to 4.4%, while the 30-year gilt has risen 0.3 percentage points to 4.58%. According to the Office for National Statistics, wages rose by 7.2% between February and April, putting the Bank of England under pressure to raise interest rates again, even as high inflation swallowed up the increase, leaving employe...