Ten-year gilt yields hit 20-day low after soft GDP data

LONDON: British government bonds rallied strongly on Thursday, taking 10-year yields to their lowest in nearly three weeks, following the release of first-quarter gross domestic product data which undershot economists' expectations.

The Office for National Statistics confirmed an earlier reading of 0.3 percent growth in the first quarter -- half the fourth quarter rate -- wrong-footing economists who had been forecasting a small upward revision.

Ten-year gilt yields hit 1.814 percent at 1053 GMT, their lowest since May 8 and more than 7 basis points down on the day. The gilts outperformed their German counterpart , narrowing their spread over German debt by around 4 basis points to 129.2 basis points.