U.K. 10-year bond yields fell to the lowest level in more than a week as investors awaited publication tomorrow of minutes of the Bank of England’s November meeting, which will show how policy makers voted.
Benchmark gilts swung between gains and losses after the Debt Management Office sold 3.75 billion pounds ($6.04 billion) of 10-year securities in the first of two sales this week. The pound was little changed versus the dollar after the Organisation for Economic Co-operation and Development said Britain’s property market may be facing a bubble, even as it raised its U.K. growth forecasts. The central bank’s Monetary Policy Committee kept interest rates at a record low on Nov. 7.
“We have the MPC minutes tomorrow where we will see what the policy discussion was like,” said Marc Ostwald, a strategist at Monument Securities Ltd. in London. “The auction was taken down easily and that’s given the market a bit of a boost. Gilts have a generally healthy bid to them. The focus now turns to the next auction on Thursday.”