UK gilts gain ahead of super-long 30-year auction, BoE Governor Carney’s speech

The United Kingdom’s gilts gained during European session Monday ahead of the super-long 30-year auction, scheduled to be held on June 25 by 09:45GMT and Governor of Bank of England (BoE), Mark Carney, on June 26 by 09:15GMT.

The yield on the benchmark 10-year gilts, plunged 4 basis points to 0.804 percent, the 30-year yield slumped nearly 3-1/2 basis points to 1.414 percent, and the yield on the short-term 2-year traded 3 basis points lower at 0.578 percent by 11:15GMT.

The coming week should be relatively low-key for UK economic news with no show-stopping releases due, sadly allowing the national embarrassment of the Conservative leadership election to continue to dominate attention. After a quiet start to the week, tomorrow will bring the CBI’s Distributive Trades Survey, which seems highly likely to suggest that retail sales remained subdued in June after declining in April and May, Daiwa Capital Markets reported.

The following day brings UK Finance loan data for May. And after a quiet Thursday, the end of the week will bring the June GfK consumer confidence and Lloyds business barometer surveys and final Q1 GDP data (which seems bound to confirm the current estimate of growth of 0.5 percent q/q boosted by Brexit-related inventory accumulation) including a first estimate of the current account deficit, the report added.

Meanwhile, the FTSE 100 remained flat at 7,410.00 by 11:20GMT, while at 11:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -30.96 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex