[ad_1]
LONDON, March 21 (Reuters) – The 10-year British government bond yield has fallen to its lowest level since September 2017, after the US Federal Reserve announced that it was no longer expecting a rise in interest rates this year and worried investors deal with Brexit.
UK 10-year gilts hit a low of 1.099% on Thursday, while 30-year gilts have continued their recent slide to their lowest level since October 2016, at 1.584%.
The measures were taken after the fall in European government bond yields after the announcement of the Fed.
Concerns about the possibility of a Brexit without agreement have also raised gilding prices.
British Prime Minister Theresa May on Wednesday urged lawmakers to support her plan for Brexit after rejecting it twice before. If it fails again next week, May will have the choice to ask for a longer deadline for Brexit or to eliminate Britain from the EU on March 29 without a transition agreement to mitigate the shock economic.
The demand for safe haven gilts generally increases as concern about the outlook for the UK economy grows.
The gap between British and German bond yields was the narrowest of the month, at 106 basis points on Thursday. (Written by William Schomberg, edited by Toby Chopra)
Source link
