U.K. bond yields rose as prices dropped Tuesday, as data showed U.K. inflation jumped to its highest in nearly two years. Consumer price inflation rose to 1% in the year to September, the Office for National Statistics said, outstripping expectations of a rise to 0.8%. Inflation last logged a 1% rate in November 2014. Bond prices slipped after the report, sending the yield on the 10-year gilt up less than 1 basis point to 1.12%. The yield on the U.K.'s 30-year bond edged up less than 1 basis point to 1.78%. Yields on Monday traded around their highest since the June 23 Brexit vote as many investors prepared for the prospect of higher inflation in the wake of the pound tumbled since June. The pound held steady around $1.2252 after the inflation report.
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