UK gilts gain strength after BoE Governor Carney remains unsure over Brexit talk results

The UK gilts gained strength Tuesday after the Bank of England (BoE) Governor Mark Carney remained uncertain in his speech delivered today, over the results of the Brexit talks. Also, the country’s 30-year auction, due on June 22, will provide detailed direction to the debt market.

The yield on the benchmark 10-year gilts, slumped 2 basis points to 1.01 percent, the super-long 30-year bond yields traded nearly flat at 1.70 percent and the yield on the short-term 2-year traded 3-1/2 basis points lower at 0.14 percent by 10:00 GMT.

Governor Mark Carney Tuesday said that while rate setters' tolerance for above-target inflation is coming to an end, it is too early to raise the key interest rate for the first time in a decade.

In a rescheduled speech to bankers at Mansion House in London, Carney said weak wage growth raised questions about the strength of domestic inflationary pressures, and he was unsure how the economy would respond to talks between the U.K. government and the rest of European Union on the terms of their separation.

Meanwhile, the FTSE 100 traded 0.15 percent higher at 7,535.75 by 10:30 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -45.96 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex