Monday, July 2, 2007

U.K. Government Bonds Climb on Terror Threat, Pound Gains on Rate Outlook

(Bloomberg) -- Gilts gained, pushing 10-year yields
to near a three-week low, as investors bought the safest assets
after U.K. police arrested five people following an attack on
Glasgow's airport and two attempted car bombings in London.

The gain in gilts, snapping a two-day losing streak, came
after the U.K. Home Office raised its terrorist threat assessment
for the country to ``critical'' after the incidents. The pound
gained for a fifth day before the Bank of England's meeting on
July 5 when policy makers are expected to raise interest rates by
25 basis points to 5.75 percent.


Read more at Bloomberg Bonds News

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