U.K. Inflation Bonds Surge on Index as Pound Falls Versus Euro

U.K. inflation-linked bonds advanced, pushing 10-year yields to an all-time low, after the Office for National Statistics said it will maintain its current formula for calculating the retail price index.

The pound fell against the euro as the Bank of England kept its benchmark interest rate at a record-low 0.5 percent and its asset-purchase target at 375 billion pounds ($602 billion). The European Central Bank also left interest rates unchanged. Ten-year yields on the inflation-protected securities rose to a six-month high last week on concern the ONS would change the index’s calculation, potentially denting returns. Ten-year gilts fell for the first time in four days.