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Pound, gilt yield jump on Carney rate comments

The pound ripped higher on Wednesday after Bank of England governor Mark Carney said that policymakers could lift rates if business investment rises.

The hawkish comments sent sterling 0.8 per cent higher to hit a near three-week high of $1.2914 against the greenback.

The prospect of a rate rise also sent gilts tumbling. The yield on the 10-year gilt, which moves inversely to price, jumped 8.7 basis points to 1.178 per cent — it’s highest level since May 9th.