U.K. 10-year Gilt Yield Hits Record Low As BOE Expands Stimulus

By Carla MozeeMarketsMarketWatch Pulse

The yield on the U.K.'s benchmark 10-year bond, or gilt, was driven to record lows Thursday after the Bank of England cut its benchmark interest rate and ramped up stimulus efforts. The yield was down 14 basis points to 0.65% compared with 0.80% just ahead of the BOE's policy decision, according to Tradeweb. Yields fall as prices rise. The key interest rate was cut to a record low of 0.25% from 0.5%, the first cut since March 2009, after data showed the U.K. economy declining after the Brexit vote. The ​BOE​'s quantitative easing program was expanded to �435 billion ($579 billion) from �375 billion. It also​ plans to start buying �10 billion in corporate bonds.

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