London (EFE).- British two-year bonds have risen to 4.73%, their highest level since 2008, exceeding the peak reached after the presentation last September of the so-called “mini-budget” by former Prime Minister Liz Truss, boosted by the latest data on wage growth.
Two-year bonds have risen 0.1 percentage points to 4.73%, compared to the maximum of 4.61% registered just after the announcement made by Truss – who lasted just 44 days in power – of a controversial cut plan unfunded tax revenues in September 2022.
Meanwhile, ten-year bonds today stand at 4.35%.
Latest unemployment and wage data
The latest employment data released this Tuesday, indicating a record rise in wages and an unemployment rate of 3.8%, raise the likelihood of further interest rate hikes.
The United Kingdom National Statistics Office (ONS) revealed that the average salary in this country in the private sector -excluding bonuses- was 7.6% higher than a year ago during the aforementioned quarter, which represents the pace fastest growth recorded outside of the pandemic period.
According to that official body, the average salary in the public sector was 5.6% higher.
The annual growth of total salaries, including bonuses, rose to 6.5%, a faster pace than anticipated by analysts.
In the opinion of economists, this increase is well above the Bank of England’s objective of lowering inflation to 2%, according to the economic newspaper “Financial Times”.
Speaking to this outlet, the chief economist at consultancy KMPG, Yael Selfin, said that “if there were any doubts regarding the direction of economic policy, these data should solidify another increase in interest rates from the Bank of England the next week and probably in the next few months.”