Fund managers snap up gilts as yields soar

Big asset managers are buying up UK government debt again, tempted by the higher yields on offer after a much faster sell-off than in other major bond markets.

Two-year gilts suffered a sharp sell-off on Tuesday, with yields surging more than 0.25 percentage points to 4.89 per cent, the highest level since 2008. However they edged down on Wednesday in early trading to 4.85 per cent. The moves follow official figures that showed wages…