The United Kingdom’s gilts suffered Monday after the country’s construction PMI data for the month of May topped market expectations, albeit remaining unchanged from the previous reading in April. Investors now remain focused on the services PMI and 5-year debt auction, scheduled on June 5 and June 6 by 08:30GMT and 09:45GMT respectively.
The yield on the benchmark 10-year gilts, rose nearly 1-1/2 basis points to 1.29 percent, the super-long 30-year bond yields remained tad higher at 1.75 percent and the yield on the short-term 2-year also traded nearly 1-1/2 basis points higher at 0.64 percent by 10:25GMT.
At 52.5 in May, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) remained unchanged since April. The figure was indicative of a moderate increase in total activity, albeit one that was subdued in the context of historical data.
Optimism towards future growth prospects meanwhile slumped to a seven-month low in May. The drop in confidence was linked to fears of political and economic uncertainty and an expected slowdown in the construction sector
Meanwhile, the FTSE 100 traded 0.87 percent higher at 7,768.75 by 10:30 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 55.53 (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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