U.K. Bonds Rise as Inflation Data Kills Higher-Rates Bets
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U.K. government bonds rose for a third day, pushing 30-year gilt yields to a record low, as the slowest U.K. inflation in almost 15 years caused traders to abandon bets that the Bank of England will raise interest rates.
A gauge of the outlook for U.K. inflation touched the lowest in more than two years as factory-gate prices, a leading indicator, fell the most in five years. The weakening price growth adds to data signaling Britain’s recovery is losing momentum, keeping the pound at about 1 percent from an 18-month low versus the dollar.