UK gilts suffer on improved risk sentiments following slight progress over Brexit negotiations

The UK gilts suffer in a flat trading session amid progress in EU-UK Brexit negotiations that weighed on debt prices.

The yield on the benchmark 10-year gilts, hovered around 1.43 percent, the super-long 30-year bond yields edged slightly up to 1.74 percent and the yield on the short-term 2-year too traded tad higher at 0.89 percent by 10:50GMT.

Following a busy UK data calendar last week – with a downside surprise to inflation, a stronger-than-expected labor market report, and some so-so retail sales figures – this week’s docket is much lighter. While the final Q4 GDP data, due on Thursday, appear to be most notable, the headline rates of growth should remain unrevised at 0.4 percent q/q and 1.4 percent y/y.

Also on Thursday, February BoE lending data is due, including mortgage approvals – a good indicator of activity in the housing market – which increased sharply in January, and consumer credit figures. Before then, on Wednesday the CBI Distributive Trade survey should bring some insights into how activity on the high street was affected by harsh weather earlier this month.

Meanwhile, the FTSE 100 jumped nearly 2 percent to trade at 7,018.21 by 10:50 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -112.45 (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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