UK gilts steady amid lack of economically significant data

The United Kingdom’s gilts steadied during European session Friday as investors remained side-lined amid a muted session that witnessed data of barely any economic significance to impact the debt market.

The yield on the benchmark 10-year gilts, hovered around 0.683 percent, the 30-year yield rose nearly 1-1/2 basis points to 1.324 percent, and the yield on the short-term 2-year too traded tad higher at 0.518 percent by 10:30GMT.

While the PMI surveys earlier this week signalled an (admittedly dubious) acceleration in jobs growth in June despite a likely drop in output, today’s KPMG and REC report on jobs suggested ongoing sluggishness in recruitment activity at the end of the second quarter, Daiwa Capital Markets reported.

In particular, the number of people placed in permanent roles fell for the fourth successive month, while temporary positions rose at a subdued pace. And unsurprisingly, survey recipients suggested that persistent political and economic uncertainty continued to weigh on job vacancies, with the survey’s relevant index remaining close to a multi-year low.

As a reflection of current labour market tightness, however, there was also a smaller pool of available candidates. And the survey also suggested that skill shortages continued to drive wages higher, the report added.

Meanwhile, the FTSE 100 remained tad -0.20 percent lower at 7,588.90 by 10:35GMT