As the Bank of England continues to raise interest rates, gilt yields hit a 16-year high.

　　Britain (GBR) sold 4 billion pounds ($5.1 billion) of two-year gilts at 5.668 percent, the highest rate since June 2007.

　　The development shows the soaring cost of government debt servicing as the Bank of England keeps raising interest rates to curb inflation.

　　The Bank of England has raised interest rates by 5 percentage points since the end of 2021, however, the country's inflation rate remains unusually high, especially core inflation, which is almost the highest among major Western economies at over 7%.

　　As a result, most market participants expect the Bank of England to raise interest rates sharply. At press time, the market was pricing in traders expecting the peak rate of this tightening cycle to be reached in March next year, at 6.5 percent, 1.5 percentage points higher than the current level.