LONDON, April 19 (Reuters) - British short-dated
government bond yields jumped to their highest level since March
9 on Wednesday after official figures showed consumer price
inflation fell less than expected in March.
Two-year gilt yields rose by 12 basis points on
the day to as high as 3.807%, while five-year yields also rose a similar amount to 3.702%, as investors increased
bets on a Bank of England rate rise next month.
Ten-year gilt yields , which are less sensitive
to short-term moves in interest rates, were 6 bps higher at
3.75%.
Interest rate futures showed a 95% chance of a quarter-point
increase in Bank Rate to 4.5% from the BoE on May 11, up from
80% on Tuesday.
(Reporting by David Milliken, editing by Andy Bruce)
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