July 22, 2020 / 8:14 AM / 13 days ago

UK government bond yields touch new lows, despite borrowing surge

LONDON (Reuters) - The yield on five-year British government bonds touched a record low on Wednesday while the 10-year gilt yield fell to its lowest ever level apart from during a slump in March at the onset of the coronavirus crisis.

A day after data showed Britain borrowed a record 128 billion pounds ($162 billion) between April and June, five times more than a year earlier, the five-year yield GB5YT=RR dipped to -0.115% while the 10-year yield fell to as low as 0.120%, both down about a basis point on the day.

The Bank of England is buying record amounts of gilts, helping to push down yields.

Writing by William Schomberg; Editing by Toby Chopra

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