A report had shown that U.K. retail sales had risen by more than most economists predicted for February and this weakened the case for monetary easing through asset purchases.
Minutes of the BoE's March policy meeting had shown that some officials were of the opinion that more bond purchases could cause an "unwarranted depreciation of Sterling."
U.K. government bonds returned 1.1% to 21st March while, for example, German bunds gained 0.6%, and Treasuries dropped by 0.1%.
It appears then that we are seeing more traction in the U.K.'s economy as the Pound prices out aggressive monetary easing that was previously completely priced in.
Sterling had also extended its gains to the Euro and government bonds had risen for a second week, as Cyprus's lawmakers had been struggling to strike a deal on unlocking rescue funds to avert a financial collapse.
A government report, which is due out on Wednesday, is though expected to confirm that the British economy has contracted 0.3% in the fourth quarter and on Thursday, the GfK NOP Ltd. is expected to announce that March consumer confidence has fallen.
Sterling had also extended its gains to the Euro and government bonds had risen for a second week, as Cyprus's lawmakers had been struggling to strike a deal on unlocking rescue funds to avert a financial collapse.
A government report, which is due out on Wednesday, is though expected to confirm that the British economy has contracted 0.3% in the fourth quarter and on Thursday, the GfK NOP Ltd. is expected to announce that March consumer confidence has fallen.
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