UDPATE: BOE Broadbent: Gilt Yields Reflect News On Global Growth
March 15 2012 - 10:36AM
Dow Jones News
A recent rise in gilt yields reflects improved hopes for growth
in the U.S. and other overseas economies, rather than any domestic
issues, Bank of England rate-setter Ben Broadbent said
Thursday.
His comments follow speculation that the rise in yields reflects
investor concern over the coalition government's fiscal austerity
program. Fitch Ratings on Wednesday warned it could cut its rating
on U.K. debt because of threats to growth.
Broadbent said the move in gilt yields doesn't stem from news in
the U.K.
"I'd say it's due to more positive news about global growth, in
particular from the United States," he said.
But government bond yields in general aren't yet giving a
markedly positive signal on the economy, he said. "There are still
big concerns" surrounding the euro zone, even after the European
Central Bank's injection of around a trillion euros into the
banking system to ease tensions.
"One should keep the recent [positive] news in perspective," he
said.
Broadbent was responding to questions from economists after a
speech.
-By Alex Brittain, Dow Jones Newswires; +44 20 7842 9203;
alex.brittain@dowjones.com