UK government bond yields fall after U-turn on tax

Yields on British government bonds fell on Monday after new finance minister Kwasi Kwarteng reversed course on a controversial tax cut that had helped to speak a rout in the gilt market.

Thirty-year gilt yields -- which surged on Kwarteng's "mini-budget" on Sept. 23 before falling when the Bank of England launched an emergency bond-buying plan -- were down by about seven basis points, falling as low as 3.750%.