Jan 13 (Reuters) – British equities ended lower on Monday, as investors shied away from risky assets after last week’s U.S. jobs report reinforced views that the Federal Reserve would be cautious about cutting interest rates this year.
The blue-chip FTSE 100 (.FTSE), dipped 0.3%, while the domestically focussed FTSE 250 midcap index (.FTMC), slipped 0.1%.
Global stocks fell, while bond yields remained elevated after data on Friday showed U.S. job growth unexpectedly accelerated in December while the unemployment rate fell to 4.1%.
U.S. government bond yields touched multi-month highs with traders pricing in just one rate cut from the Fed this year.
British bonds have been at the heart of a recent global bond market selloff, with a sharp rise in borrowing costs fuelling concerns about Britain’s fiscal sustainability. The yield on the 30-year gilt jumped to a fresh 27-year high, while the yield on the 10-year note stood at its highest…
