Economics
U.K. Bonds Surge as Brexit Prompts Bets on BOE Interest-Rate Cut
- Benchmark 10-year gilt yields slide to lowest on record
- Two-year gilt yields slide to lowest level since April 2013
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U.K. government bonds surged as the nation voted to leave the European Union amid speculation the Bank of England will maintain an easy monetary policy to ward off the risk of recession after the departure.
Benchmark 10-year gilt yields dropped to an all-time low, while those on two-year securities plunged to the lowest since April 2013. The campaign to leave the world’s biggest trading bloc gained 52 percent of the vote, versus 48 percent for “Remain,” after all the voting stations declared results Friday morning in London. U.K. Prime Minister David Cameron resigned, saying he’d serve another three months.