LONDON: British 10-year government bonds made modest gains on Wednesday after solid demand at an auction of 2.5 billion pounds ($3.08 billion) of the benchmark debt pushed yields to their lowest since Oct. 14.
Investors bid for more than twice the volume sold at auction by the UK Debt Management Office, with successful bids clustered tightly around the average yield of 1.078 percent.
After the auction the 10-year bond extended gains to take yields more than 2 basis points down on the day at 1.056 percent by 0952 GMT. This was the lowest since Friday and well off a three-month high of 1.223 percent struck on Monday when jitters about Britain's Brexit prospects peaked.
Twenty- and 30-year gilts made similar gains, while gilts' spread over German Bunds tightened by around 3 basis points from levels seen earlier in the day to 104 basis points.
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