Bank sees 'no immediate need' for rate rise despite unemployment fall

The unemployment rate fell by more than expected this morning, from 7.4% to 7.1% in the three months to November, prompting a rise in gilt yields. Data from Tradeweb shows the yield on 10-year gilts rose by 2.84% to 2.9% following the release of the data at 9:30am. The Bank of England has previously said it will consider increasing interest rates when the unemployment rate falls to 7%, a move which would be negative for bondholders. The faster-than-expected fall in the unemployment rate has prompted market participants to anticipate a rise in interest rates earlier than previously ...