UK gilts continue to remain flat ahead of Q2 GDP

The UK gilts traded flat as investors wait to watch the country’s second-quarter gross domestic product, due to be released on August 24 by 08:30GMT.

The yield on the benchmark 10-year gilts, hovered around 1.08 percent, the super-long 30-year bond yields traded flat at 1.75 percent while the yield on the short-term 2-year traded 1-1/2 basis points lower at 0.20 percent by 11:10 GMT.

The Recruitment and Employment Confederation survey, published this morning, raised a red flag about the outlook for the UK jobs market, which perhaps surprisingly remained firm in the first half of the year when GDP growth slowed. The survey’s headline indicator, which captures employer confidence, slipped into negative territory, declining from +6-3 percent.

And although one in five firms indicated that they are still looking to expand their workforces, confidence in making those hiring and investment decisions eased, with the relevant indicator moderating to the lowest level in a year, with the weak political backdrop and a lack of clarity in the Brexit negotiations unsurprisingly key factors playing on employers’ minds.

Meanwhile, the FTSE 100 traded flat at 7,382.25 by 11:10 GMT, while at 11:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -33.19 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest