UK Gilt Yields Jump to Multi-Week Highs After Mixed Jobs Signals

Yields on short-dated UK government bonds rose sharply in early London trading on Thursday after the latest labour-market figures pointed to a mixed jobs picture. The two-year gilt yield climbed more than five basis points to 3.904%, its highest level since 9 July, while the five-year yield added more than four basis points to 4.093%, the strongest since 16 June. The move came as sterling slipped and futures indicated the FTSE 100 would open higher, suggesting investors are positioning for a potentially softer economic outlook even as wage pressures persist. Higher yields reflect expectations that the Bank of England may maintain restrictive policy longer to contain inflationary risks highlighted by the employment data due later in the day.