Sterling initially dropped, reflecting disappointment after traders had priced in a 30% chance of another 50 bp hike.
Longer-term gilt yields, more responsive to investors' perceptions about the economic growth trajectory, rose by the most in a month.
Governor of the Bank of England Andrew Bailey attends a press conference for the Monetary Policy Report August 2023, at the Bank of England in London, Britain, August 3, 2023.
Two-year gilt yields have risen by more than 120 basis points this year, more than double the increase of their U.S. equivalent.
On Thursday, two-year gilt yields were down 5 bps in late trade, while those on 30-year debt rose 10 bps, the most in a month, to 4.66%.
Persons:
BoE, Andy Burgess, Andrew Bailey, Sterling, we've, Bank of England Andrew Bailey, Alastair Grant, Jeremy Hunt, Carl Shepherd, they'll, juicier, Peter Goves, Kirsten Donovan
Organizations:
Bank, Bank of England, Monetary, REUTERS, Conservative, Newton Investment Management, Swiss, MFS Investment Management, Reuters Graphics, Thomson
Locations:
AMSTERDAM, LGIM, London, Britain, U.S