FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The UK gilts plunged Wednesday after data showed that the number of people claiming unemployment benefit in Britain unexpectedly fell in July.
The yield on the benchmark 10-year gilts increased 2 basis points to 0.608 percent, the super-long 40-year bond yield jumped 3 basis points to 1.235 percent and the yield on short-long 2-year bond climbed 2 basis points to 0.190 percent by 11:10 GMT.
The UK claimant count (c-c) unemployment (u/e) falls in July, by 8.6K, against market expectations for an increase of 9.5K, and follows a slightly upwardly revised rise of 0.9K in June (previous was 0.4K).
Moreover, the unemployment rate in the three months to the end of June was unchanged at 4.9 percent. Average weekly earnings excluding bonuses rose 2.3 percent over the same period, up from 2.2 percent. Additionally, headline average earnings growth of 2.4 percent y/y in second quarter, in the line of market consensus, from previous 2.3 percent.
In addition, the July British consumer inflation rate hardens to 0.6 percent y/y, faster than the market consensus prediction of 0.5 percent as compared to 0.5 percent in June. The latest annual rate of increase comes on the back of a 0.1 percent m/m drop, which incidentally had been the central market forecast.
Core inflation actually eases, to 1.3 percent y/y, as the market expected, from 1.4 percent in June, but we note the sharp acceleration in producer input price as well as output price inflation (4.3 percent y/y and 0.3 percent respectively) that points to prospects of a continued hardening of the annual CPI inflation rate in the coming months.
Meanwhile, the FTSE 100 traded 0.21 percent lower at 6,879.30 by 11:10 GMT.
