U.K. Gilt Yields Rise to Four-Month High After Auction
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U.K. government bonds fell for a fourth day, pushing 10-year yields to the highest level in almost four months, as demand dropped at a 3.75 billion-pound ($5.84 billion) sale of new benchmark securities.
Two-year gilt yields climbed above 0.5 percent for the first time since April 2012 as a government report showed industrial production rose in April. Gilts have underperformed German bunds every day since June 4, when industry data showed the U.K.’s construction industry unexpectedly expanded last month. Investors bid for 1.52 times the amount of 10-year bonds sold today, down from a bid-to-cover ratio of 1.68 on April 9. The pound was little changed.