UK gilts rally after strongest auction demand in three weeks

LONDON (Reuters) - British government bonds rallied and five-year yields touched their lowest in two months, after strong investor demand at an auction of 2 billion pounds of 12-year gilts, a day after Britain sold its first bond with a negative yield.Investors bid for almost three times the volume on offer of the 4.25% 2032 gilt , the highest bid-to-cover ratio for a conventional gilt auction since April 28. The gilt sold at an average yield of 0.321%.Gilt future prices rallied by around 15..