UK 10-year gilt yields rise to one-month high on brighter world economy

LONDON: British 10-year gilt yields rose to their highest level in just over a month, pushed higher by faster-than-expected Chinese economic growth and a rise in German bond yields on Wednesday.

Ten-year gilt yields rose 3 basis points on the day to 1.248 pct, their highest level since March 14, while two-year yields rose by a similar amount to touch their highest level since March 4 at 0.828 percent.

China's economy grew at a steady 6.4 percent in the first quarter from a year earlier, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement.

The news boosted risk sentiment, hurting safe-haven assets and lifting Germany's 10-year yield 3 basis points to a 4-week high of 0.101 percent, up almost 20 basis points from a 2-1/2-year low below zero hit last month as recession fears gripped world markets.