LONDON: Prices for 10- and 20-year inflation-linked British government bonds fell to a six-day low on Tuesday after lawmakers wrote to statisticians to request they seek the finance ministry's permission to change the inflation formula used by the bonds.
Real yields on a wide range of British linkers were up by around 4-5 basis points on the day at 0945 GMT versus a 1-2 basis point rise in the yield of conventional gilts .
Lawmakers estimate that errors in the calculation of the retail price index (RPI) for inflation, the benchmark for index-linked gilts, leads to annual inflation being overstated by about 30 basis points.
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