(Bloomberg) -- U.K. government bonds rallied, sending the benchmark 10-year yield to a record low, after the Federal Reserve's interest rate cut fueled bets the Bank of England will follow.
The yield declined five basis points to 0.338%, extending the bonds' advance to an 12th 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.
They now see a 60% chance of a 50-basis-point reduction.
Read More: Fed Raises Bets for Cuts in Japan and New Zealand, QE Down Under
--With assistance from James Hirai.
To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
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