U.K. Gilt Yields Fall Most in Four Weeks on Fiscal-Cliff Concern

U.K. gilts rose, with 10-year yields falling the most in four weeks, as speculation U.S. lawmakers will fail to agree on a way to avoid the so-called fiscal cliff spurred demand for safer assets.

Benchmark yields fell to a two-week low after U.S. Senate Majority Leader Harry Reid said it looks like the nation is headed “over the cliff,” referring to the more than $600 billion in tax increases and spending cuts that will take effect in January unless Congress acts. Gilts also gained on speculation some investors were looking to reduce risk as the year-end approaches. The pound was little changed against the dollar and euro.