year gilt yields rise to 2-month high after US Fed hold

LONDON, Jan 29 (Reuters) - Ten-year ⁠British ‌government bond yields rose ⁠to their highest since November 20 on ‍Thursday, tracking a modest upward move in U.S. ‍Treasury yields after the Federal Reserve kept interest ⁠rates unchanged on Wednesday.

Ten-year gilt yields rose 2 basis points on the day ​to peak at 4.569% at 0831 GMT.

The U.S. Fed left interest rates alone, as widely expected, and Chair ‍Jerome Powell talked about a "clearly improving" economic ‌outlook and broad support on the committee for a ‌pause.

Economists polled by the Reuters expect the Bank of England to keep interest rates ‌on hold at 3.75% on February 5 ​after its next meeting, while LSEG rate futures show a quarter-point rate cut is not ⁠fully priced in until ‍July.

Only around 33 bps of BoE rate cuts ​are priced in for 2026 as ⁠a whole, around 1 bp less than on Wednesday. (Reporting by David Milliken; editing by William James)