UK gilts plunge on increasing risk appetite of investors

The UK gilts plunged Friday shifted from safe-haven assets towards riskier assets including equities and crude oil.

The yield on the benchmark 10-year gilts, which moves inversely to its price, rose 1-1/2 basis points to 1.40 percent, the super-long 30-year bond yields also jumped 1-1/2 basis points to 2.06 percent and the yield on short-term 2-year moved 1/2 basis point higher to 0.12 percent by 10:20 GMT.

Further, the UK gilts have been closely following developments in oil markets because of their impact on inflation expectations. The International benchmark Brent futures moved higher 0.39 percent to USD56.78 and West Texas Intermediate (WTI) rose 0.30 percent to USD53.70 by 10:20 GMT.

Lastly, investors also wait to note the country’s retail sales data, scheduled to be released on February 7, besides, trade balance and manufacturing production data as well.

Meanwhile, the FTSE 100 rose 0.34 percent to 7,165.25 by 10:20 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -157.40 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex