EURO GOVT-Ten-year Bund yields break above 2.5 pct

LONDON | Tue Oct 26, 2010 4:50am EDT

LONDON Oct 26 (Reuters) - Ten-year Bund yields broke above the key psychological level of 2.5 percent on Tuesday after stronger-than-expected UK GDP data dimmed chances of more quantitative easing from the Bank of England.

The 10-year yield DE10YT=TWEB rose as high as 2.511 percent, the most since early August, while 5-year yields DE5YT=TWEB similarly rose as high as 1.709 percent.

The Office for National Statistics said Britain's economy grew 0.8 percent between July and September [ID:nAHLPLE68G].

Analysts had forecast growth of 0.4 percent on the quarter -- one third the rate seen in the first three months of the year.

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