UK gilt yields hit one-month low after U.S. jobs data

Credit: REUTERS/LEONHARD FOEGER

LONDON, March 8 (Reuters) - British government bond yields fell to one-month lows on Friday after U.S. jobs data prompted traders to raise bets that the Federal Reserve will start to cut interest rates earlier this year than previously thought.

Five- and 10-year gilt yields fell to their lowest levels since Feb. 5 after the U.S. figures showed cooling wage growth and a rising unemployment rate, despite a bigger rise in non-farm payrolls than analysts had expected.

The five- and 10-year gilt yields stood at 3.892% and 3.957% as of 1400 GMT, down 7 and 4 basis points respectively on the day.

Rate futures now fully price in a 25 basis point Bank of England interest rate cut by August, which was not quite fully priced in a week ago.

(Reporting by Andy Bruce; editing by David Milliken)

((andy.bruce@thomsonreuters.com; +442075134461; Reuters Messaging: @brucereuters))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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