U.K. Bonds Worst Performer as Traders Look for BOE Rate Clues
- BOE policy makers publish new growth forecasts Thursday
- Gilts underperformed U.S., euro-area debt over past month
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U.K. government bonds became the worst performer among sovereign-debt markets over the past month as investors adjusted positions before growth and inflation forecasts due from Bank of England policy makers meeting in London this week.
Benchmark 10-year gilt yields climbed to a six-week high Tuesday, after an unexpected surge in Britain’s manufacturing growth reported the previous day prompted investors to bring forward bets on the timing of the BOE’s first interest-rate increase since the financial crisis. A report Tuesday showed a gauge of construction declined to 58.8 last month, from 59.9 in September.