Gilts rally after Fed opens door to more stimulus

first_img KCS-content Gilts were given a further boost when the minutes from the Bank of England’s most recent Monetary Policy Committee (MPC) meeting showed increased concerns about the outlook for the economy. But Sam Hill, a UK fixed income strategist at RBC Capital Markets warned it would be difficult to justify more QE with inflation already higher than target.The UK rally tracked similar movements in the US gilts market, where yields on benchmark 10-year Treasuries slid to their lowest level in three weeks.Gold prices saw yet another spike, with spot gold setting a record of almost $1,300 an ounce, while the dollar lost 1.5 per cent on a trade weighted basis, on fears that another round of stimulus would mean an effective devaluation of the currency. YIELDS on UK government bonds saw their sharpest fall in 18 months, after the US?Federal Reserve said it was open to a new round of quantitative easing (QE) to help revive the flagging American economy.The yield on the benchmark 10-year gilt dropped by 15 basis points to 2.97 per cent, the biggest drop since the Bank of England started buying up government bonds in March last year. Share whatsapp Wednesday 22 September 2010 8:56 pm More From Our Partners A ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodaySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So whatsapp Gilts rally after Fed opens door to more stimulus Tags: NULLlast_img read more