UK government bond prices surged to record levels on Monday as the Bank of England’s plan to expand the money supply sharply boosted sentiment. Benchmark 10-year gilt yields fell to 2.95% – the lowest since records began in the 1950s. The pound also dropped briefly to a six-week low of $1.3741 against the dollar as currency traders worried that the Bank’s plan to buy up to £75bn of gilts over the next three months could destabilise the economy.
