Pound Jumps, Bonds Plunge on Relief a Brexit Deal Still Possible
- Sterling climbs as much as 1.7%; 30-year debt yield up 10bps
- Less than three weeks remain to reach a trade agreement
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The pound posted its biggest gain in almost two months and bonds plummeted after the U.K. and European Union agreed to continue negotiating, keeping hopes for a trade agreement alive.
Sterling climbed as much as 1.7%, leading gains among all currencies tracked by Bloomberg, to $1.3446 after U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to go the “extra mile” and keep working on a post-Brexit accord. The EU’S chief negotiator Michel Barnier later told a private meeting of ambassadors that a trade deal with the U.K. could be completed as soon as this week.