UK gilts rise modestly after February manufacturing PMI falls shy of previous, meets estimates

The United Kingdom’s gilts modestly rose during Friday’s afternoon session, after the country’s manufacturing PMI for the month of February fell shy of previous reading, albeit in line with market expectations.

The yield on the benchmark 10-year gilts, slipped to 1.303 percent, the super-long 30-year bond yields remained nearly 1 basis point lower at 1.813 percent and the yield on the short-term 2-year edged 1 basis point down at 0.820 percent by 11:15GMT.

The headline seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) fell to a four-month low of 52.0 in February, down from a revised reading of 52.6 in January (originally reported as 52.8). The PMI is currently at its second-lowest level since July 2016 – the month following the EU referendum.

"The sector’s sickness was also visible in employment levels with the steepest job losses in six years and with business optimism at its lowest levels since 2012, firms are unlikely to start hiring any time soon. The small gram of positivity around the reduction in inflationary pressures on input prices offered little consolation," said Rob Dobson, Director at IHS Markit.

Meanwhile, the FTSE 100 remained 0.47 percent higher at 7,108.08 by 11:20GMT, while at 11:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 36.21 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex