Wednesday, June 13, 2007

U.K. Bond Yields Reach Seven-Year High on View Rates Will Rise Further

(Bloomberg) -- Gilts fell, pushing yields to the
highest in seven years, on speculation global interest rates will
rise further as central banks attempt to check inflation.

Benchmark U.K. debt fell for a second day after former
Federal Reserve Chairman Alan Greenspan predicted an increase in
U.S. yields yesterday. Gilts extended declines as a government
report today showed unemployment at a 20-month low, which may
quicken inflation and erode the value of bonds' fixed returns.


Read more at Bloomberg Bonds News

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