Pound Jumps as Carney's Hawkish Tone Sends Gilts Tumbling
- Sterling climbs by the most since April versus dollar
- Two-year gilt yields rise to their highest in over a year
Carney Says May Be Necessary to Remove Some BOE Stimulus
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The pound soared by the most in two months and U.K. bonds slumped as Bank of England Governor Mark Carney said the Monetary Policy Committee may need to begin removing stimulus.
Sterling climbed against all but one of its major peers as the comments marked a shift in emphasis for the governor, who signaled last week that now was not yet the time to start the tightening process. The yield on two-year gilts touched the highest in more than a year as money markets adjusted to the change in language.