UK Gilts plunge after November employment report delivers along market expectations; investors eye Q4 GDP
Source: FxWire Pro - Commentary / 24 Jan 2018 05:11:22 Eastern Standard Time
The UK gilts plunged Wednesday after the country’s employment report for the month of November, delivered along market expectations, with unemployment remaining unchanged. Investors will now be focusing on the country’s fourth-quarter gross domestic product (GDP), scheduled to be released on January 26 by 04:30GMT.
The yield on the benchmark 10-year gilts, jumped nearly 3 basis points to 1.38 percent, the super-long 30-year bond yields surged 2-1/2 basis points to 1.87 percent and the yield on the short-term 2-year traded 1-1/2 basis points higher at 0.58 percent by 09:45GMT.
The number of people in work in Britain surged unexpectedly in the three months to November and regular wages rose at their fastest rate in almost a year, official data showed on Wednesday. The Office for National Statistics (ONS) said the number of people in work rose by 102,000 in the three months to November, the biggest increase since the period to July and taking total employment to a record 32.2 million. A Reuters poll of economists had pointed to a fall of 13,000.
The ONS said workers’ earnings, excluding bonuses, rose by an annual 2.4 percent in the three months to November, the biggest increase since December 2016 and compared with 2.3 percent in the three months to October. Total pay growth, including bonuses, was unchanged at 2.5 percent, as expected.
Meanwhile, the FTSE 100 traded 0.49 percent lower at 7,693.50 by 09:50 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bullish at 151.20 (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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