Gilt Yield Rises to 15-Month High on Fed Concern; Pound Falls
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U.K. government bonds fell for a second day, pushing 10-year yields to the highest level in 15 months, as speculation the Federal Reserve will reduce debt purchases reduced demand for fixed-income securities.
Ten-year gilt yields headed for their biggest weekly increase since January 2009, while the spread over similar-maturity bunds expanded for a fifth day. Sovereign bonds across the world have tumbled since Fed Chairman Ben S. Bernanke said June 19 that policy makers may begin paring asset purchases this year and end them in mid-2014. The pound weakened against the dollar and the euro.