UK short-dated gilt yields highest since 2008 ahead of BoE, Fed

LONDON (Reuters) – British two-year and five-year government bond yields rose to their highest since late 2008 on Wednesday, ahead of expected interest rate increases from the U.S. Federal Reserve later on Wednesday and the Bank of England the day after.

Britain’s government also gave more details of support to businesses for energy costs, which it said would cost tens of billions of pounds.

Two-year gilt yields rose to their highest since October 2008 at 3.381%, up 9 basis points on the day, while five-year yields were the highest since November 2008 at 3.361%, up more than 6 basis points.

(Reporting by David Milliken, editing by Andy Bruce)