Gilts Rise for First Time in Six Days as Cameron Sees Tough Year
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U.K. government bonds rose for the first time in six days as Prime Minister David Cameron’s prediction of a difficult year for the economy spurred demand for benchmark yields near the highest since April.
The pound weakened for a second day versus the euro after Cameron said on BBC Television yesterday the economic environment is “tough” and “Britain needs low interest rates.” The 10-year gilt yield jumped 30 basis points last week, the biggest increase since the five-day period ended January 23, 2009. The Bank of England meets this week to review monetary policy.