U.K. Government Bonds End Longest Winning Streak in Four Years
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U.K. government bonds fell, halting 10-year gilts’ longest winning streak since 2010, amid speculation that investors pushed yields down too far on bets the Bank of England will keep interest rates at a record low.
The 10-year gilt yield rebounded from yesterday, when it had plunged to the least since May 2013 as waning inflation expectations fueled a worldwide flight to the safest fixed-income assets. BOE official Martin Weale said it might be hard for the central bank to address “very low” inflation. The Debt Management Office sold 1.4 billion pounds ($2.2 billion) of 10-year index-linked bonds at the lowest real yield since June 2013.