Gilts Advance as BOE Damps Optimism on U.K. Economy; Pound Slips
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U.K. government bonds advanced for a second day as speculation that Britain’s economy will require further stimulus lifted demand for the safest assets.
Ten-year yields fell to a two-week low as Bank of England Deputy Governor Charles Bean cautioned against over-optimism following third-quarter gross domestic product data. Policy makers will decide Nov. 8 whether to increase bond purchases, or quantitative easing, to boost the economy. German bunds rose as Spain’s Premier Mariano Rajoy said he will request a bailout when he judges it’s in the nation’s interests. The pound weakened versus the dollar and the euro.