UK gilts gain ahead of BoE MPC Treasury Committee Hearings, Nov manufacturing PMI

The United Kingdom’s gilts gained during European trading hours Tuesday as investors remained side-lined amid a muted trading session that witnessed data of little economic significance.

However, investors’ attention might turn towards the Bank of England’s (BoE) Monetary Policy Committee (MPC) Treasury Committee Hearings, due on November 21 and the country’s manufacturing and services PMIs for the month of November, both due to be released on the following day for further direction into the debt market.

The yield on the benchmark 10-year gilts, slipped nearly 1 basis point to 0.744 percent, the 30-year yield hovered around 1.275 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points down at 0.567 percent by 10:15GMT.

British Prime Minister Borris Johnson announced that the corporation tax cut from 19 percent to 17 percent due next April will be cancelled to save money to spend on voters’ priorities, OCBC Treasury Research reported.

Investors retain a cautious stance against risk assets early today amid market uncertainty over whether the US and China are getting close to finalizing “phase one” trade deal given the lack of fresh news on their trade conflict, Eurobank Economic Analysis & Financial Markets Research reported.

Meanwhile, the FTSE 100 surged a tad over 1 percent to 7,387.27 by 10:20GMT.