Gilt Yields Fall to One-Week Low After Industrial Output Drops

U.K. 10-year bond yields dropped to the lowest level in a week after a government report showed industrial production slumped in September, spurring demand for the safety of government debt.

Benchmark gilts outperformed German bunds before Bank of England policy makers start a two-day meeting tomorrow where they will decide whether to increase monetary stimulus, or so-called quantitative easing. The pound weakened against 12 of its 16 major counterparts as the factory data damped optimism the economy is recovering. The Debt Management Office sold 3.25 billion pounds ($5.2 billion) of 10-year gilts.