Gilt price falls for third day in a row as investor confidence starts to return

UK government bonds, or gilts, fell in price for a third day as equity markets rebounded, buoyed by more confidence in a global economic recovery. Traditionally, bonds, though regarded as safer than stocks, offer investors a lower return during strong economic times. Ten-year gilts fell by £0.31 to £109.66, pushing the yield up to 3.56%. Britain's bond market has benefited from the debt crisis in the eurozone, which has encouraged investors to flock to sterling-denominated bonds, therefore pushing down the cost to government of borrowing funds from the market.