The prospect of the U.K.’s record-low interest rates enduring for longer is helping to support the nation’s government bonds, which are headed for their best first quarter in 23 years. Gilts returned 4.4 percent in the year through Tuesday, according to Bank of America Merrill Lynch indexes, set for the best start to a year since 1993. All 43 economists in a Bloomberg survey predict the Bank of England will keep rate at a record-low 0.5 percent on Thursday.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net. To contact the editors responsible for this story: David Goodman at dgoodman28@bloomberg.net, Todd White
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