(Bloomberg) -- U.K. government bonds rallied, sending the benchmark 10-year yield to an all-time low, after the Federal Reserve's interest rate cut fueled bets the Bank of England will follow.
The yield declined two basis points to 0.39%, extending the bonds' advance to an 11th day, the longest streak on record. Money markets were already pricing a full rate cut by the BOE this month when the Fed startled investors with its emergency action.
Read More: Traders Rev Up Bets on Who's Next After Fed's Emergency Cut
Traders now see a 25% chance of a 50-basis-point reduction in March.
--With assistance from Anooja Debnath.
To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net
To contact the editors responsible for this story: Rachel Evans at revans43@bloomberg.net, Michael Hunter
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