LONDON, April 25 (Reuters) - British government bonds extended this week's losses after higher-than-expected U.S. inflation data on Thursday, pushing yields to their highest since November.
Ten-year gilt yields reached their highest level since Nov. 3 at 4.396% at 1321 GMT, up more than 5 basis points on the day, while five-year yields hit their highest since Nov. 27 at 4.297%, up 7 basis points.
Five-year yields are on course for their biggest weekly rise since the week of Feb. 5, and five- and 10-year yields are heading for their largest monthly increase since June and May 2023 respectively.
Unlike earlier in the week, when gilts led the slide in bond prices as comments by Bank of England policymakers prompted investors to push back their expectations for British rate cuts, the rise in yields on Thursday was led by U.S. Treasuries.
However, investors' expectations for BoE rate cuts are still fading. While a first quarter-point rate cut is still likely by August, it is only fully priced in for September, and 44 bps of cuts are priced in for 2024, down from 46 bps late on Wednesday.
A Reuters poll published on Wednesday showed 31 of 63 economists expected a first rate cut in June, 30 predicted a cut in August or September and two expected the BoE to wait until November.
BoE Governor Andrew Bailey said last week that different inflation paths for the United States and Europe this year could lead to somewhat different paths for interest rates.