U.K. government bonds rose, with 10- year yields falling to the lowest since September, as a U.S. report showing employers added fewer jobs than economists forecast boosted demand for Britain’s fixed-income assets.
The 2.5 million rupees ($45,984) Nirav Vora had in the Indian stock market six years ago have plunged by 72 percent. Now the 39-year-old father of two in Mumbai, who depends on investment income for his livelihood, is plowing money into government bonds.
As Mark Carney prepares to take charge of the Bank of England, U.K. inflation expectations are close to a two-year high with policy makers focusing on growth even if it means letting consumer-price gains accelerate.
Britain’s economy expanded less than previously estimated in the third quarter and the budget deficit unexpectedly widened in November, complicating Prime Minister David Cameron’s attempts to bolster the recovery.