The returns on British 2-year government bonds sank on Thursday following the Bank of England's (BoE) latest decision to reduce its interest rates by 25 basis points to 5%.
Today's cut is the first in four years, although Governor Andrew Bailey cautioned that the bank needs to be "careful not to cut rates too quickly or by too much."
At 1:04 pm CET, the yield on the two-year gilt dropped 6.5 basis points to 3.747%. The return on the 10-year gilt was 5.5 basis points lower, falling to 3.916%. A minute later, the yield on the 30-year gilt declined by 4.3 basis points to 4.492%.
