U.K. 30-Year Gilts Drop Fourth Day on Sale as Notes Rally on BOE
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U.K. 30-year bonds declined for a fourth day as the Debt Management Office sold 5 billion pounds ($7.7 billion) of securities due in 2068 via banks, the longest-ever maturity for a conventional gilt.
Thirty-year securities underperformed their shorter-maturity peers after the extra yield over 10-year bonds shrank to the least in 15 months. Two-year gilts rose for the first time in seven days as Bank of England policy makers said the growth outlook remained modest and further asset purchases were possible. Governor Mervyn King, who retires at the end of the week, told lawmakers that the U.K. economic recovery is too weak to be satisfactory. The pound fell versus the dollar.