UK gilts remain narrowly mixed ahead of upcoming General election

The UK gilts traded narrowly mixed Wednesday as the upcoming snap election in the country, scheduled for June 8 as was declared by Prime Minister Theresa May has added uncertainties and clouded the outlook for the money market.

The yield on the benchmark 10-year gilts, hovered around 0.98 percent, the super-long 30-year bond yields slipped around 1 basis point to 1.65 percent while the yield on the short-term 2-year traded almost 1 basis point higher at 0.09 percent by 10:00 GMT.

Ahead of a blockbuster end to the week, today offers us little in terms of meaningful data or events to get excited about. Domestically we get the latest UK Halifax house price update and in the US consumer credit.

Overnight price action in the markets is a testament to this, with most markets unchanged, leaving the main mover in G10 being the AUD (up around 0.5 percent) after GDP figures came in a little better than expected. Otherwise, the broader USD at the moment remains under pressure, alongside US yields, despite a number of our technical indicators suggesting the former is due to a corrective rebound.

The focus is now squarely on the events in the coming days, those being the UK general election, the ECB policy announcement and the former FBI Director Comey’s testimony in the Senate.

Meanwhile, the FTSE 100 traded 0.16 percent higher at 7,537.25 by 10:10 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -0.40 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex