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UK gilts rally after official signals BoE is open to rate cuts in 2024

Yield on short-term British government debt falls to lowest level since June
Bank of England chief economist Huw Pill said the bank could be in a position to ‘consider or reassess’ its stance on rates in the middle of next year

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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