U.K. Yields Jump as Investors See Two BOE Rate Increases

Policy maker comments spurred speculation that sent government-debt yields surging

Yields on the U.K. government’s two-year debt climbed to levels last seen before the nation voted to leave the European Union. Bank of England policy maker Gertjan Vlieghe stoked speculation of an interest-rate increase within months, prompting investors to price in two hikes by the end of next year. That may be a bit exuberant, according to Jason Simpson, a strategist at Societe Generale SA. The yield is likely to drop about 10 basis points from the current 0.45 percent “once the dust settles.”

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