Interest rate concerns biggest one-day decline

for three years

The London market resumed itsexpected US consumer price data,time it has closed below 5,700

downward trend yesterday, regis-which stoked fears of further ratesince January and its largest one-

tering its biggest one-day percent-rises by the Federal Reserve.day points fall since September

age loss since March 2003, as theMining and oil stocks, which2002. The blue-chip index is now

spectre of rising interest rateshave been the best performers in7.5 per cent below the ve-and-a-

returned to haunt investors.the year to date, took the brunt ofhalf year high of 6,132.7 recorded

After a bright opening, leadingyesterday’s selling. The FTSE-100on April 21.

shares went into reverse follow-nished down 170.7 points, or

ing the release of stronger than2.9 per cent, at 5,675.5 – the rst

FT

Source:Financial Times, 18 May 2006

Box 6.10

UK government bond prices and yields

UK GILTS – cash market

www.ft.com/gilts

	Red	.........Change in Yield.........	...52 week...	Amnt
Price £	Yield	DayWeekMonthYear	HighLow	£m

Tr 7.5pc ‘06.............................101.514.700.040.040.210.40104.77101.5112,394

Tr 4.5pc ‘07.............................99.844.700.050.050.240.42100.7899.8312,071

Tr 5pc ‘08................................100.374.780.060.070.270.51102.49100.3414,928

Tr 4pc ‘09................................97.834.840.070.060.280.5599.9197.7816,974

Tr 4.75pc ‘10...........................99.754.820.070.050.270.52103.0599.6612,774

Cn 9pc Ln ‘11..........................118.944.800.080.040.250.50125.94118.825,664

Tr 5pc ‘12................................101.114.780.080.040.240.45105.27100.9514,009

Tr 8pc ‘13................................119.984.750.080.030.210.41126.66119.776,489

Tr 5pc ‘14................................101.794.740.080.020.190.39107.25101.5413,699

Tr 4.75pc ‘15...........................100.284.710.080.010.190.36106.1899.990

Tr 4pc ‘16................................94.364.700.090.010.180.5899.1694.053,000

Tr 4.75pc ‘20...........................101.164.640.09–0.170.26109.01100.7310,743

Tr 8pc ‘21................................136.094.640.09–0.150.27146.62135.5217,573

Tr 5pc ‘25................................106.464.490.080.030.120.13115.82105.7116,188

Tr 6pc ‘28................................122.654.410.090.040.090.08134.07121.7012,340

Tr 4.25pc ‘32...........................98.984.320.090.060.060.01109.0197.4917,326

Tr 4.25pc ‘36...........................99.874.260.090.070.040.06110.4297.3915,668

Tr 4.75pc ‘38...........................109.144.230.090.080.030.08120.90106.1414,958

Tr 4.25pc ‘55...........................104.184.050.090.09–0.16116.3198.8911,602

War Ln 3.5pc...........................81.174.310.080.070.040.0593.9078.631,939

xd Ex dividend. Closing mid-prices are shown in pounds per £100 nominal of stock. Red yield: Gross redemption yield. This table shows the gilt

benchmarks & the non-rump undated stocks. A longer list appears on Mondays & the full list on Saturdays, and can be found daily on

ft.com/bonds&rates.Source: Debt Management Ofce (DMO)

FT

Source: Financial Times, 18 May 2006

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