Gilt Yields Hit Highest in Nearly Three Months Ahead of CPI

Gilt yields rose to their highest in almost three months ahead of UK inflation data that could cement the case against the Bank of England cutting interest rates again this year.

The two-year yield rose as much as 2 basis points to 3.98%, its highest level since June 9. Wednesday’s inflation print is forecast to show the headline rate accelerated to 3.7% in July, nearly double the BOE’s target.