U.K. Yields Drop on Manufacturing Grew Less than Forecast

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Source: Bloomberg
Ten-year gilt yields fell to 1.80%, reaching five-week low, as a report showed U.K. manufacturing grew in September less than expected. U.K. benchmark gilts outpaced German bunds as the Bank of England officials meet tomorrow to take a decision, whether to increase fiscal policy through quantitative easing. Benchmark yields are forecast to reach 2.0% by the end of the year and then rise to 2.90% by 2014.


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