Demonstrating the recession fears gripping the market, U.K. gilt yields dropped by nearly a quarter-point after inflation data showing the fastest growth in prices since 1982. Earlier, the U.K. Office for National Statistics reported that CPI rose to 9.1% in the 12 months to May. The yield on the 2-year gilt dropped 23 basis points to 2.09%. The yield on the 2-year German bund slipped nearly 10 basis points to 1.05%.

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