london jan 6 reuters  british shortdated government bond yields were on course for their highest close in almost three years on thursday tracking yields for us government debt higher as markets weighed the prospects of an early rate rise by the us federal reserve minutes from the last fed meeting released late on wednesday showed us monetary policymakers thought they might need to raise interest rates sooner than expected and also reduce its overall asset holdings to curb high inflation read more interest rate sensitive twoyear gilt yields rose more than 4 basis points higher on thursday to 080 at 1630 gmt in line with twoyear treasuries  in what looks set to be their highest close since early march 2019 fiveyear gilt yields were 4 basis points higher too at 096 and also on course for their highest close since march 2019 while 10year yields were at 115  6 basis points up on the day  and the highest since october 2021 the bank of england became the first major central bank to raise interest rates since the start of the pandemic last month when it increased its main rate to 025 from 01 financial markets now price in a 74 chance that it will raise rates again to 05 on feb 3 after its next meeting two and fiveyear gilt yields have almost doubled since early december as financial markets priced in greater tightening and judged that the omicron variant of coronavirus would only put a temporary brake on economic recovery