UK Gilts decline in muted trading session, reverse gains post Q3 GDP data
Source: FxWire Pro - Commentary / 24 Nov 2017 04:38:28 Eastern Standard Time
The UK gilts declined on the last trading day of the week amid a silent session that witnessed least data of any major economic significance, reversing all gains seen after the release of the third-quarter gross domestic product (GDP).
The yield on the benchmark 10-year gilts, jumped 2 basis points to 1.27 percent, the super-long 30-year bond yields rose 1 basis point to 1.82 percent and the yield on the short-term 2-year traded 2-1/2 basis points higher at 0.47 percent by 09:20GMT.
While attention in the UK will be on the outcome of PM May’s discussions with European Council President Tusk in the margins of the latest EU leaders’ summit, that event seems unlikely to provide a breakthrough in the negotiations.
Instead, the key date appears to be 4 December, when May will meet with Commission President Juncker and Chief EU Negotiator Barnier, with EU diplomats scheduled to meet a couple of days after that to prepare the leaders’ all-important decision for the 14-15 December summit.
Lastly, the Office for National Statistics (ONS) reported that Britain's gross domestic product (GDP) grew 0.4 percent on a quarterly basis in the three months to the end of September, up from the 0.3 percent recorded in the previous quarter and unchanged from the preliminary estimate released last month.
Meanwhile, the FTSE 100 traded -0.26 percent lower at 7,397.25 by 09:25 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 36.31 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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