Investors sought the safest fixed-income assets amidst faltering global economic growth, resulting in U.K. government bonds advancing for a fourth week. The 10-year yield fell to the lowest level in more than a year.
U.K Gilt yields plunged as investors pushed back bets on the date of the first Bank of England interest-rate increase since 2007 after a report showed inflation slowed to the least in five years in September. Recent economic data have made the Bank of England “gloomier” and stays on the sidelines as rates are held at a record low for longer. Sentiments for the expected rate hike has been delayed until late 2015. Pound Sterling weakened versus the Euro as well as erasing losses against the Dollar at the end of the week.