Breaking News

Tweet TWEET

U.K. Gilts Extend Decline, Pound Strengthens After ECB Allots 3-Year Loans

U.K. 10-year government bonds extended a decline and the pound rose against the euro and dollar after the European Central Bank allotted 529.5 billion euros ($712.2 billion) of three-year loans to banks, exceeding analyst estimates.

The 10-year gilt yield rose three basis points to 2.13 percent at 10:44 a.m. London time.

The pound strengthened 0.4 percent to 84.27 pence per euro. It appreciated 0.2 percent to $1.5939.

European banks were forecast to tap the ECB for 470 billion euros in the longer-term refinancing operation, according to the median estimate in a Bloomberg News survey of 28 economists. The amount compares with 489 billion euros taken at the first offering of such loans in December.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.