UK gilts jump ahead of monthly GDP, August manufacturing production

The United Kingdom’s gilts jumped during European trading hours Tuesday ahead of the country’s monthly GDP and manufacturing production for the month of August, scheduled to be released on October 10 by 08:30GMT respectively.

The yield on the benchmark 10-year gilts, plunged nearly 4 basis points to 0.413 percent, the 30-year yield slumped 2 basis points to 0.929 percent and the yield on the short-term 2-year also lost nearly 4 basis points to 0.315 percent by 11:40GMT.

Politics will inevitably continue to dominate the news flow, with the Government this morning having published its tariff schedule in the (still unlikely) event of a no-deal Brexit at end-month, Daiwa Capital Markets reported.

Lastly, Chief Economist Haldane and external MPC member Tenreyro are due to speak publicly. But given the focus of their respects events, none of them seems likely to comment explicitly on the BoE monetary policy outlook. Finally, in the bond market, the DMO will sell 2036 index-linked Gilts, the report added.

Meanwhile, the FTSE 100 remained tad -0.24 percent down at 7,182.56 by 11:45GMT.