Bank of England Hike Sends Yields Down by Most Since 2016 Cut

(Bloomberg) -- Five-year U.K. bond yields do the same thing whether Bank of England Governor Mark Carney cuts or raises borrowing rates.

The central bank reversed its post-Brexit policy rate reduction with a widely expected increase Thursday, pushing five-year gilt yields more than 10 basis points lower as policy makers sent pessimistic signals on the nation’s potential growth. That’s the biggest drop since Aug. 4, 2016 -- the day Carney & Co. cut interest rates in the aftermath of the U.K.’s vote to leave the European Union.

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