U.K. Bond Yields Rise to Two-Year High on Divorce-Deal Optimism
- Pound gains on mounting optimism over Brexit outcome
- Gilts likely to remain under bearish pressure, says Mizuho
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The yield on U.K. government bonds climbed to the highest level in more than two years amid growing optimism that a Brexit deal will be reached.
The pound advanced for a second day and gilts slid after a Reuters report said sources within the European Union see a divorce deal with the U.K. as “very close,” although traders who asked not to be identified said the pound gains came under thinner-than-average trading volumes. The currency extended its gains on a report later Friday that the European Union is set to offer the U.K. a free-trade deal deeper than any agreement that’s gone before.