Financial Times FT.com

Gilts prices jump as Bank prepares to buy bonds

By David Oakley, Capital Markets Correspondent

Published: March 5 2009 12:58 | Last updated: March 5 2009 12:58

UK gilt prices rose sharply after the Bank of England cut interest rates to record lows and announced plans to expand the money supply – quantitative easing – by £75bn, which would mainly involve buying government bonds.

Medium and longer dated gilts outperformed the shorter-end of the yield curve as the Bank said it would likely buy a majority of bonds of these maturities over the next three months.

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