Election Threatens Gilts After Selloff Sends 10-Year Yield to 2%
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In the week of a general election that looks set to produce no clear winner, a global selloff in government bonds was the last thing U.K. bondholders needed.
Yields on benchmark 10-year gilts exceeded 2 percent for the first time this year on Wednesday before stabilizing, joining this month’s tumble in bonds from Europe to the U.S. With polls indicating neither Labour nor the Conservatives will win the overall majority of seats they need to govern alone after Thursday’s vote, traders are braced for more volatility.