Financial Times FT.com

Government bonds recover losses

By David Oakley, Capital Markets Correspondent

Published: May 7 2009 11:30 | Last updated: May 7 2009 21:57

Government bond markets recovered losses on Thursday after the Bank of England’s bold moves to step up quantitative easing allayed concerns that the policy was losing momentum.

The Bank’s decision to buy another £50bn in bonds to take the asset purchase programme up to £125bn turned the market, which had fallen sharply as investors questioned the commitment of policymakers to QE.

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