Financial Times FT.com

UK Budget 2008

Higher gilt targets push bonds lower

By Neil Dennis and Robert Orr

Published: March 12 2008 14:46 | Last updated: March 12 2008 19:05

Two-year gilt yields saw their biggest daily rise for a decade on Wednesday after the government said it would issue a record amount of bonds as the chancellor announced a surge in public sector borrowing.

UK government bondsGilt prices, already lower ahead of the Budget, moved further into negative territory on the news, pushing yields sharply higher.

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