UK 10-year gilt touches 1.30 pct mark for the first time in two weeks on Bremain hopes

The UK 10-year gilt yield climbed to 1.30 percent mark for the first time in two weeks, which we expect to stay ahead of the referendum outcome.

Also, the Gilt/Bund yield spread has widened to nearly 125 basis points resistance, where we similarly think it should pause. After all, despite market confidence in a Remain vote, we would highlight that polls show the outcome is too close to call.

The yield on the benchmark 10-year gilts rose 2 basis points to 1.308 percent and the yield on super-long 40-year bond climbed 1-1/2 basis points to 1.944 percent by 09:30 GMT.

Two opinion polls on Monday showed that the “Remain” camp has recovered some ground in Britain’s European Union referendum debate.

According to the NatCen poll results on the United Kingdom referendum campaign, 53 percent would vote to 'Remain' in the European Union, while, 47 percent would vote to 'Leave'. Similarly, the ORB/Daily Telegraph poll results on the United Kingdom referendum campaign, 53 percent would vote to 'Remain' in the European Union, while, 46 percent would vote to 'Leave'.

On the other hand, a new UK poll by Survation for IG group shows 45 percent favour remaining in the EU vs 44 percent for remaining. This slim +1 percent pro-EU balance is down from 3 percent in the organisation's last survey published on Monday.

The implied probability of a 'Remain' vote in Thursday's EU referendum in the UK has softened a shade to 77 percent according to the latest Betfair odds, down from Monday's recent high at 78 percent.

Interestingly, the EU Financial services commissioner Jonathan Hill, speaking in German newspaper Handelsblatt, said that a 'Brexit' could force banks and investment funds to shift their activities and jobs to Frankfurt and Paris.

Whilst this is likely to be the case, we would also add that the Commissioner's appointment would probably also be under threat, once article 50 is invoked, should the UK electorate opt to leave the EU. So it is probably also in his interests that the UK stays in. We remain with the view that the outcome would be 'Bremain' even if only by a slender margin.

Lastly, oil prices rose in early Asian trading on Wednesday, with U.S. crude joining Brent above $50 a barrel after data from the American Petroleum Institute (API) showed a larger than expected draw on stocks. U.S. crude inventories fell by 5.2 million barrels for the week ended June 17, the API said. The trade group's figures were triple the draw of 1.7 million barrels forecast by analysts in a Reuters poll. The International benchmark Brent futures rose 0.71 percent to $50.98 and West Texas Intermediate (WTI) climbed 0.82 percent to $50.26 by 09:00 GMT.

Meanwhile, the FTSE 100 trading up 0.17 percent at 6,237 by 09:30 GMT.