UK two-year gilt yield hits 1-month high as Iran and US clash

LONDON, July 13 (Reuters) - The yield on two-year British government bonds jumped to its highest level in more than a month on Monday as U.S. and Iranian forces exchanged missile and drone attacks in the Gulf, pushing up global oil prices.

Britain's two-year gilt yield - which is sensitive to speculation about official interest rates - was up by 11 basis points on the day at 4.349% at 1453 GMT, its highest since June 11.

Investors were fully pricing a quarter-point interest rate increase by the Bank of England in November. On Friday, a hike was fully priced for December.

(Writing by William Schomberg, editing by Andy Bruce)