The pound rose as high as $1.3469, a three-year high, and gilt yields jumped after the latest U.K. inflation data showing CPI jumping to 3.5% year-over-year in April from 2.6% in March. The

spike derived from what's known as the "Awful April" effect -- when council tax, mobile and broadband contracts and energy tariffs reset at high levels. The rise was only

one-tenth higher than what the Bank of England had forecast -- two-tenths higher than consensus -- though services prices were unusually strong. According to LSEG, markets now price in a 91%

chance the Bank of England will keep rates steady at its next meeting in June.