(Bloomberg) -- Gilts fell this week, pushing 10-year
yields to the highest in more than seven years, on speculation
the Bank of England will keep raising the cost of borrowing to
cool inflation.
The BOE raised rates for a fifth time in 12 months this
week, to a six-year high of 5.75 percent, and signaled further
increases may be needed. The central bank said inflation risks in
the medium term ``lie to the upside.'' The government said
yesterday factory production rose in May to the highest in almost
six years, a sign rates aren't too high to support economic
expansion.
Read more at Bloomberg Bonds News
yields to the highest in more than seven years, on speculation
the Bank of England will keep raising the cost of borrowing to
cool inflation.
The BOE raised rates for a fifth time in 12 months this
week, to a six-year high of 5.75 percent, and signaled further
increases may be needed. The central bank said inflation risks in
the medium term ``lie to the upside.'' The government said
yesterday factory production rose in May to the highest in almost
six years, a sign rates aren't too high to support economic
expansion.
Read more at Bloomberg Bonds News
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