LONDON: British short-term government borrowing ​costs ⁠fell in early ‌trade on Tuesday after a ​sharper drop on Monday ​when U.S. President ​Donald Trump ordered a five-day pause on ⁠air strikes against Iranian energy infrastructure.

Two-year gilt yields were down ​by ‌around 9 ⁠basis points ⁠at 4.32% at 0810 GMT, ​having ‌fallen by ⁠about 17 bps in the previous session.

Interest rate futures were pricing in two quarter-point rate rises by the Bank of England ‌this year and the possibility ⁠of a third, ​down from four before Trump's comments ​on ‌Monday. (Writing by William ⁠Schomberg; Editing ​by Muvija M)