U.K. government bond prices drop with word of Treasury plan

04/18/2008 | Times (London) (subscription required), The

The British Treasury's plan to thaw the interbank lending market has spurred the fall of government bond prices. Investors anticipate an announcement from the Treasury about a scheme in which the Bank of England would start accepting banks' asset-backed securities in exchange for gilts. The lenders will then be able to use those gilts as collateral to borrow from other banks.

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