Saturday, March 2, 2013

Gilt yields drop to two-month low on UK recession fears

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Gilt yields drop to two-month low on UK recession fears

LONDON (Reuters) – British government bonds rallied on Friday, pushing yields to a two-month low, after new signs of economic weakness raised speculation that the Bank of England will opt next week to pump more cash into the economy. Despite the fact that ratings agency Moody’s stripped Britain of its triple-A credit rating late last Friday, gilt yields have dropped by almost 25 basis points this week – the biggest one-week fall since November 2011

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Gilt yields drop to two-month low on UK recession fears

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