Investors rush to gilts as BoE eyes more QE

Laura Miller
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Government bonds jumped on Wednesday on rumours the Bank of England could be moving closer to increasing its £200bn "money-printing" programme to buoy the recovery.

Minutes from the Bank's Monetary Policy Committee (MPC) meeting this month showed several policymakers believe "the probability that further action would become necessary to stimulate the economy and keep inflation on track to hit the [2%] target in the medium term had increased". Yields on 10-year gilts plunged back below 3% on the news, closing down 0.14 at 2.98%. They had earlier dropped by 17 points - the most in over a year, the Telegraph reports. In the US, Germany and France gilt prices also rose. Investors were still seeking government bonds after the Federal Reserve's signal ...

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