The United Kingdom’s gilts gained during European trading hours Friday after the country’s construction PMI for the month of July disappointed market sentiments beyond initial anticipations.
The yield on the benchmark 10-year gilts, traded tad higher 0.618 percent, the 30-year yield hovered around 1.315 percent and the yield on the short-term 2-year traded tad 1 basis point higher at 0.438 percent by 10:10GMT.
At 45.3 in July, the headline seasonally adjusted IHS Markit/CIPS UK Construction Total Activity Index posted below the 50.0 no-change value for the fifth time in the past six months. The latest reading was up from June's ten-year low of 43.1 but still signalled a marked downturn in total construction activity.
"Moving into the second half of the year it will take the sector some time to dig its way out of this deep hole. As the autumn and the potential negative impacts of a no-deal exit from the EU threaten, any significant recovery is unlikely to be on the horizon until 2020. Construction optimism is at its lowest since November 2012, so there’s no time to lose in injecting some stability and certainty into the economy and Brexit plans before a recovery of months turns into years," said Tim Moore, Economics Associate Director at IHS Markit.
Meanwhile, the FTSE 100 slumped nearly 2 percent to 7,441.99 by 10:15GMT.


US Stock Futures Rise as Markets Await July Payrolls Data
Asian Stocks Slip as AI Rally Fades, Oil Holds Steady on Iran Peace Deal Hopes
Wall Street Ends Mixed as Dow Hits Record Despite Tech Weakness
Gold Prices Steady as Hormuz Tensions Fuel Fed Rate Concerns
Canada, US Hold Constructive Trade Talks as Tariff Negotiations Continue
US Stock Futures Hold Steady as Iran Hormuz Deal and Earnings Shape Market Sentiment
Asian Stocks Cautious Ahead of US Jobs Data as Oil Rises
US Job Growth Seen Picking Up in July
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise
Asian Currencies Hold Steady as US Dollar Nears Seven-Week Low Ahead of Key Jobs Data 



