UK gilts remain unnerved before today’s Brexit vote on Plan B in House of Commons

The United Kingdom’s gilts remained unnerved during Tuesday’s late afternoon session as investors patiently await the Brexit vote on Plan B in the House of Commons, scheduled for later in the day, to be presented by Prime Minister Theresa May, post rejection of her Plan A and surviving a no-confidence vote in the Parliament off late.

The yield on the benchmark 10-year gilts, remained tad higher at 1.337 percent, the super-long 30-year bond yields hovered around 1.746 percent and the yield on the short-term 2-year remained 1 basis point higher at 0.785 percent by 11:30GMT.

All eyes in the UK today will be on this evening’s Brexit votes in the House of Commons. Theresa May’s strategy was revealed last night when she sought to persuade Conservative MPs to back an amendment, tabled by Tory backbencher Sir Graham Brady, which would endorse her deal subject to negotiating alternative arrangements to avoid a hard border in Ireland in place of the current draft backstop agreement.

Of course, the EU has long made clear that it has no intention to renegotiate the backstop, or anything else in the Withdrawal Agreement. Moreover, it’s already evident that, if it is selected for a vote, the Brady amendment will face defeat. Certainly, several notable Brexiters of the ERG are refusing to back it, thus revealing that their support cannot be bought simply by tweaking the backstop, Daiwa Capital Markets reported.

Assuming the Brady amendment is indeed selected for a vote, however, the magnitude of defeat could be instructive as to what might be required if a version of May’s deal is eventually to make it through the Commons, the report added.

Meanwhile, the FTSE 100 jumped 1.30 percent to 6,836.25 by 10:35GMT, while at 11:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 14.15 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex