Government bonds from the United Kingdom continue to fall, pushing 10-year yields to its highest point in three years. Sale of 3.75 billion-pound benchmark securities slipped due to low demand.

Underperformed German bunds continue to plague UK gilts since June 4 amidst the country's expansion of the construction industry. Two-year gilts rose to levels highest within the year. The Office for National Statistics said that the increase of industrial production is unexpected.

In effect, the pound slipped against the euro - a trend that started three days ago.

"The strength of the U.K. data means were are unlikely to see any more QE any time soon, which explains gilts' underperformance," said Simon Peck, Royal Bank of Scotland Group's rates strategist. He said that "it was an OK auction," and continued to describe it as "lukewarm."

Gilt rates rose by a little over seven basis points to 0.5 percent.