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Trading news
23 Apr 2015
UK Gilt yields drop
FXStreet (Mumbai) - The yields on the short duration and long duration gilt yields in the UK fell after the official data showed retail sales growth slowed down more than expected in March.
The 10-year Gilt yield in the UK fell 2.5 basis points to 1.69%, while the two-year year yield, which mimics short-term interest rate expectations, fell 3.2 basis points to 0.525%. The one-year yield dipped 2.6 basis points to 0.435%.
The Gilt prices rose, thereby pushing the yields lower after the ONS data in the UK showed the retail sales in March rose 4.2% year-on-year, missing the estimate of 5.4%. On the month, the retail sales decreased by 0.5% compared with February 2015. The uptick in the core inflation failed to provide any respite to the yields, which are already under pressure due to election uncertainty.
Meanwhile, another data showed Government borrowing fell to EUR 7.4 billion in March, figures show, taking the total for the financial year to EUR 87.3 billion. March's borrowing figure was down 5.6% from a year earlier, the Office for National Statistics figures showed.
The 10-year Gilt yield in the UK fell 2.5 basis points to 1.69%, while the two-year year yield, which mimics short-term interest rate expectations, fell 3.2 basis points to 0.525%. The one-year yield dipped 2.6 basis points to 0.435%.
The Gilt prices rose, thereby pushing the yields lower after the ONS data in the UK showed the retail sales in March rose 4.2% year-on-year, missing the estimate of 5.4%. On the month, the retail sales decreased by 0.5% compared with February 2015. The uptick in the core inflation failed to provide any respite to the yields, which are already under pressure due to election uncertainty.
Meanwhile, another data showed Government borrowing fell to EUR 7.4 billion in March, figures show, taking the total for the financial year to EUR 87.3 billion. March's borrowing figure was down 5.6% from a year earlier, the Office for National Statistics figures showed.