UK gilts remain lower post BoE Governor Carney’s speech; investors await Q2 GDP

The UK gilts remained on the downside Thursday, following a speech by Bank of England (BoE) Governor Mark Carney’s and the country’s Prime Minister Theresa May at a conference in London. Also, the country’s gross domestic product (GDP) for the second quarter of this year, scheduled to be released on September 29, will add further direction to the country’s debt market.

The yield on the benchmark 10-year gilts, rose 1-1/2 basis points to 1.40 percent, the super-long 30-year bond yields climbed 1 basis point to 1.95 percent and the yield on the short-term 2-year also traded flat at 0.46 percent by 09:40 GMT.

Speaking at a conference in London to celebrate two decades of the BOE autonomously setting interest rates, Carney warned against confusing "independence with omnipotence". He said that while monetary policy could respond to the risks related to the exit from the European Union, most of the adjustments are not in "the gift of central bankers".

The BoE Governor was speaking before Prime Minister Theresa May, who highlighted the importance of the U.K.’s free market economy and said that the new and defining characteristics of central banks are "openness and transparency". May, who sparked controversy last year by saying some central bank actions were not working for average Britons, also said it was up to the government to mitigate any side effects of BOE policy.

Meanwhile, the FTSE 100 traded 0.08 percent higher at 7,219.50 by 09:45 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -117.42 (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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