
UK gilts rallied sharply on Tuesday as traders seized on comments from a senior Bank of England policymaker suggesting it may be willing to consider interest rate cuts in the middle of next year.
The yield on the interest rate-sensitive two-year gilt fell to 4.59 per cent, its lowest level since June, after comments from Huw Pill, the BoE’s chief economist, late on Monday. It was recently trading at 4.64 per cent, down 0.08 percentage points on the day. Yields move inversely to prices.
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