UK bond yields soar as markets brace for interest rate rise

Expectations jump after Bank governor says action will have to be taken to curb rising inflation

Expectations that the Bank of England will raise interest rates as early as next month jumped in the City on Monday after the governor said it would have to act to curb rising inflation.

The yield, or interest rate, on the UK's two-year government bonds jumped to its highest level since May 2019 as traders anticipated a rate rise.