LONDON: The yield on five-year British government bonds rose back above its peak on the day of June 2016’s Brexit vote on Wednesday for the first time since the referendum, bolstered by strong British employment data and a broad-based rise in global yields.
The five-year gilt yield hit a high of 0.929 pct, up more than 5 basis points on the day and pushing past the peak of 0.918 percent recorded on June 23, 2016, the day of the referendum as gilt prices fell across the curve.
The five-year yield is now at its highest since May 31, 2016.
Wednesday’s data showed one measure of wage growth rose to a near one-year high in the three months to November as the number of people in work in Britain picked up, reversing falls in the two previous monthly releases.
The Bank of England is watching pay growth closely as it considers following up on November’s first interest rate hike in a decade.
Source: Brecorder.com
