U.K. 10-Year Break-Even Rates Widen Most in Month After Auction
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U.K. 10-year break-even rates widened the most in almost a month on increased demand for inflation-linked gilts as the nation sold 1.5 billion pounds ($2.4 billion) of the securities due in 2024.
The pound strengthened for a second day against the dollar. Bank of England Monetary Policy Committee member Martin Weale said the U.K. could face a triple-dip recession, the Daily Mail reported, citing an interview. A consultation on potential changes to the formula used to calculate Britain’s retail-price index has led to market concern about the impact on inflation-linked gilts, Robert Stheeman, chief executive officer of the U.K.’s Debt Management Office, said on Sept. 26.