The FINANCIAL — UK gilts declined, pushing 30-year yields higher for the first time in five weeks, as central banks provided cheaper funding to ease strains in the financial markets, and as the US jobless rate unexpectedly fell, told gulfnews.
Ten-year yields rose as investors unwound haven bids after European Central Bank President Mario Draghi signalled the central bank could do more to fight the debt crisis if governments pushed the euro area toward a fiscal union. The six central banks, led by the Federal Reserve, agreed on Wednesday to cut the cost of providing dollar funding via swap agreements.
The pound rose against the dollar and yen.The yield on 30-year gilts rose 13 basis points from last week the biggest weekly gain since the period ended on October 14.Ten- year gilt yields were little changed at 2.29 per cent while the rate on two-year notes fell eight basis points to 0.38 per cent. It dropped to a record low of 0.36 per cent on Thursday.
The Debt Management Office increased the amount of gilts it planned to sell in the fiscal year ending in March by 6.8 per cent to £178.9 billion as economic growth slows.