markets

Gilts and Sterling Tell Different Stories on Brexit Risk: Chart

The pound and U.K. government bonds appear to be taking opposing sides on the economic landscape shaped by Brexit. Sterling reached its highest level against the dollar since the U.K. vote to leave the European Union last week, while sovereign obligations continued to outperform U.S. counterparts. While the weak greenback and the Treasury selloff are also at play, the divergence suggests the gilt market is “far more skeptical about Brexit progress," according to Citigroup Inc. strategist Jamie Searle.

— With assistance by Cormac Mullen

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