BOE minutes suggest potential stimulus advance

Individuals learning how to trade may be interested in the effects the Bank of England's (BOE) most recent minutes release has had on gilt yields, which Bloomberg reports were pushed to a ten-year low as some members of the committee suggested further economic stimulus could be needed.

The ten-year gilt yield dropped 0.02 points to 2.16 per cent and the 30-year yield fell two basis points to 3.10 per cent.

John Hydeskov, chief analyst at Danske Bank A/S in London, described the tone of the minutes revealed today (November 23rd) as "dovish".

He told the news provider: "It's natural for the bank to apply more stimulus. We expect the Bank of England to increase its asset-purchase target by £50 billion in January 2012."

Sterling declined to a three-week low against the euro yesterday, reaching 86.53 pence against the common currency at 12:47 GMT and also slipping against the dollar amid investor uncertainty.

Posted by Greg Secker