Gilt yields near two-month high on eurozone optimism

Ten-year gilt yields have approached a two month high as signs eurozone leaders are closer to resolving the crisis cooled demand for the relative safety of Britain's government debt.

The 10-year gilt yield climbed one basis point, or 0.01 percentage point, to 2.65% at 8:45am in London, after reaching 2.67%, the highest since 9 August. Two-year note yields were unchanged at 0.63%. Sterling weakened versus all of its 16 major peers, depreciating against the euro for a third time in four days. The pound weakened 0.2% to 87.73p per euro and fell 0.1% to $1.5741. Slovakia is expected to approve an enhanced European bailout fund today or tomorrow and Greece may also be granted faster access to €15bn in European infrastructure subsidies under new proposals announced toda...