The Bank of England will hold on to its 375 billion pounds ($630 billion) of U.K. government bonds until at least 2017 as officials maintain stimulus to underpin the recovery, according to Pacific Investment Management Co.
Bonds linked to U.K. inflation are beating all but one of their developed-market peers this year, a sign investors see price increases accelerating from the slowest pace since 2009 as the economy gathers strength.
The pound advanced for a second week versus the dollar after the U.K. jobless rate unexpectedly fell below 7 percent, the threshold the Bank of England has set to start considering raising interest rates.
The pound rose to the highest level in more than four years against the dollar as Federal Reserve Chair Janet Yellen signaled the U.S. central bank will keep an accommodative monetary policy that has weakened the greenback.
The dollar strengthened for a fifth day against a basket of major peers as an agreement to start de- escalating the conflict in Ukraine sent stocks higher and pushed Treasuries down the most in a month.
Canada’s political class laid former Finance Minister Jim Flaherty to rest today at a state funeral in Toronto, where he was lauded for his political pragmatism, his work on behalf of the disabled and his humor.