U.K. Bond Plunge Pushes 10-Year Yield to Highest Since Brexit
- BOE’s Carney says he’s willing to allow inflation overshoot
- Yields surge on investment, inflation and QE fears: UBS
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U.K. government bonds tumbled, pushing 10-year yields to the highest level since Britain’s June 23 vote to leave the European Union.
Benchmark gilts fell for a third successive week on concern that a sliding currency will cause inflation to accelerate just as the economy is hit by the decision to leave the world’s biggest trading bloc. Bank of England Governor Mark Carney said Friday he’d tolerate an overshoot of his inflation target to cushion the Brexit blow.