On Wednesday, British two-year and five-year government bond yields increased to their highest since late 2008. This development came ahead of expected interest rate hikes from the US Federal Reserve later on Wednesday. The Bank of England is said to increase rates on Thursday.

The government of Britain also provided more details of support to businesses for energy costs, which it stated would cost tens of billions of pounds.

Two-year gilt yields climbed to their highest since October 2008 at 3.381 per cent, up nine basis points on the day. Five-year yields were the highest since November 2008 at 3.361 per cent, up more than six basis points.

Gilt-edged securities denote to the bonds issued by the UK Government. The term is referred to the debt securities issued by the Bank of England on behalf of His Majesty’s Treasury, whose paper certificates had a gilt edge.