UK two-year yields hit highest since April 2020 after BoE speech

LONDON (Reuters) - British government bonds tumbled on Thursday after a Bank of England policymaker said the central bank might call time early on its asset purchase programme, pushing two-year yields to their highest since April 2020.

Rate-sensitive two-year gilt yields rose almost 8 basis points on the day to 0.161%, pushing past a previous high set in late June to their highest since April 2020, not long after the BoE restarted purchases of government bonds.

Benchmark 10-year gilt yields rose 4 basis points on the day to 0.67% following the speech by Monetary Policy Committee member Michael Saunders, who said inflation pressures risked proving more durable than the BoE had initially hoped.

(Reporting by David Milliken; Editing by Alistair Smout)