U.K. Gilt Yields Drop Most in Four Months on Europe Debt Concern
This article is for subscribers only.
U.K. government bonds rose, with 10-year yields falling the most in almost four months, as speculation euro-area leaders are moving too slowly to end the debt crisis boosted demand for safer assets.
Benchmark gilt yields dropped to the lowest in two weeks after demonstrations turned violent yesterday in Madrid and the President of the Spain’s Catalonia region called early elections to push for self-determination. The pound gained for a third day against the euro as an index of U.K. retail sales rose in September. A gauge of the expected rate of inflation over the next 30 years, known as the break-even rate, dropped to the lowest level since 2003.