Gilt and treasury yields hit fresh two-year highs on taper fears

Yields on UK and US 10-year government bonds rose to fresh two-year highs on Monday as selling pressure on bonds continues to mount amid the possibility the Federal Reserve could begin to wind down its stimulus as early as September. The yield on a 10-year gilt rose to 2.739%, a level not seen since August 2011. In the space of a month, gilt yields have risen from 2.3% to hit yesterday's level. Meanwhile, US treasury yields hit a high last seen in July 2011, reaching 2.864%. Investors will be watching with interest to see if there are any more clues about the timing of any possible...