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UK gilts gain amid Brexit uncertainties ahead of another vote today; Q4 GDP meets estimates

The United Kingdom’s gilts gained during Friday’s afternoon session, ahead of investors’ interest on today’s House of Commons for another Brexit debate and vote, the latter of which is set to be conducted shortly after 2.30GMT.

The yield on the benchmark 10-year gilts, suffered 1-1/2 basis points to 0.985 percent, the super-long 30-year bond yields slipped 1 basis point to 1.528 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points down at 0.648 percent by 10:30GMT.

PM Theresa May is asking MPs to vote to approve her Withdrawal Agreement, this time without the accompanying Political Declaration on the future relationship, to meet the conditions set by European leaders to allow the UK to leave the EU on May 22.

But with the Northern Irish DUP still vehemently opposed, at least 25 Conservative Brexiters similarly set to vote against, the Labour frontbench unwilling to accept the ‘blindfold Brexit’ that the lack of agreement on the Political Declaration would imply, and Labour rank-and-file MPs from Leave-voting constituencies alienated by May’s evident determination to put her party before her country, the PM is expected to be defeated once again, perhaps by upwards of 50 votes, Daiwa Capital Markets reported.

Meanwhile, the FTSE 100 remained tad 0.34 percent higher at 7,260.21 by 10:35GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained slightly bearish at -76.28 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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