Financial Times FT.com

Gilt yields soar on issuance worries

By David Oakley and Michael Mackenzie

Published: June 11 2009 21:08 | Last updated: June 11 2009 21:08

UK bond yields soared above 4 per cent amid fears the economic revival could stall because of the vast debt burden taken on by the industrialised nations.

Yields, which have an inverse relationship with prices, rose 8 basis points to 4.01 per cent – a level last seen in November, with traders increasingly warning that the gilts market may struggle to absorb the record levels of issuance this year.

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