The UK government bonds increased in value as its ten year notes fell to their lowest level since September of 2012. This was augured by a report indicating the smallest growth achieved by US payrolls in nine months that boosted the demand for safer assets.
The ten year gilts dropped for a fourth week in a row after the European regional economy stalled because of the Cyprus bailout crisis. The concerns for not only Cyprus but otther countries is fueling fears of a new sovereign debt crisis period for the region.
In response, the Bank of England retained its asset purchase target of GBP375 billion or US$575 billion keeping the benchmark interest rate at 0.5%, resulting in a six week high for the British pound as against the US dollar.
The UK Debt Management Office is set to sell GBP3.5 billion of ten year gilts on April 9, before it offers another volume of GBP1.6 billion due on 2024 on April 11.
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