UK bond market flashes economic warning after hot inflation data

Short-term UK government bonds sold off sharply on Wednesday as blistering inflation data lifted expectations for Bank of England rate rises, sending a measure of concern over Britain’s economic outlook to the highest level since 2008.

Two-year gilt yields, which are sensitive to expectations for monetary policy, soared 0.24 percentage points in morning action to 2.39 per cent. Longer-term bonds came under softer selling pressure,…