Yields on U.K. government bonds have rallied across the curve as the Bank of England adopts a more "hawkish" tone.
The majority of Monetary Policy Committee members think "some withdrawal of monetary stimulus is likely to be appropriate over the coming months."
Also supporting yields is the BoE now expects inflation to rise above +3% in October.
Two-year gilt yields have rallied to +0.32%, their highest level since July and sharply up since levels of +0.13% only last week. Five, 10 and 30-year yields are also backing up.
The FTSE 100 is trading down -0.36% as GBP/USD trades up +0.8% at £1.3320 and EUR/GBP is down -0.82% at €0.8926.
