US Treasurys higher ahead of Bank of England decision

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U.S. government debt prices were slightly higher on Thursday after the Bank of England cut interest a key rate for the first time in seven years.

The widely expected move came seven weeks after a closely-fought referendum on European Union membership ended with a surprise vote for the U.K. to leave the trading zone.

"Not only did the BoE cut interest rates by 25 bps as fully expected, they expanded sovereign QE by 60 billion to 435 billion from 375 billion pounds and they are adding a corporate bond buying program but that is modest, just 10 billion pounds over the next 1 ½ years. They also added a short term lending program for banks to cushion the impact of low rates," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note to clients.

"Bottom line, the BoE is now falling further into the same trap as the Fed, BoJ and ECB and for some reason hoping to see a different result," he said.


The yield on the benchmark 10-year Treasury note, which moves inversely to its price, sat lower at around 1.5052 percent, while the yield on the 30-year Treasury bond was also lower, at 2.2594 percent.

In oil markets, U.S. crude was up 2.40 percent, at $41.81 a barrel.