UK 10-year gilt yields hit highest since May, global bond yields jump to multi-month high

The UK 10-year gilt yields hit highest since May on Monday as investors moved away from safe-haven buying amid widespread global debt sell-off.

The yield on the benchmark 10-year gilts, which moves inversely to its price, rose 10 basis points to 1.460 percent (highest since May), the super-long 30-year bond yield jumped 9 basis points to 1.862 percent and the yield on short-term 2-year bounced 4 basis points to 0.270 percent by 09:00 GMT.

The UK bonds have been closely following developments in the U.S. debt market. The United States benchmark 10-year Treasury yield bounced 12 basis points to 2.237 percent for the first time in 2016.

A heavy sell-off in government bonds was supported by rising expectations that the U.S. President-elect Donald Trump's policies, such as fiscal expansion and protectionism on international trade, could support growth and inflation.

Last week, the United States Republican candidate Donald Trump pinned his victory against Democrat opponent Hillary Clinton in the 2016 presidential election. Investors again revised the outlook for US interest rates after Donald Trump's victory, with the probability of a December rate hike by the Federal Reserve going from as low as 30 percent to as high as 84 percent.

Also, the fall in the number of people opting for unemployment benefits in the United States has strengthened the probability of a December interest rate hike by the Federal Reserve.

Lastly, investors remain keen to focus on the upcoming economic data and events, highlighted by October CPI, claimant count change, unemployment rate, BoE MPC Member Cunliffe speech, October retail sales.

Meanwhile, the FTSE 100 traded 1.12 percent higher at 6,803.10 by 09:00 GMT. While at 09:00 GMT, the FxWirePro's Hourly GBP Strength Index approaching bullish trend, currently at 74.14 (higher than 75 represents purely bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex