Bank of England - Quarterly Bulletin (Q2 2010)

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The Bank of England's Quarterly Bulletin, published on Monday, showed that despite heightened investor concerns the fiscal situation in Europe, yields on UK gilts fell in the second quarter of 2010.

The fall was the result of lower expected future interest rates, rather than a rise in demand for government debt, the bulletin said.

Against the backdrop of increased investor concerns about fiscal sustainability in some European countries and the large projected UK fiscal deficit position, the

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