UK gilts trade mixed after November construction PMI remains tad higher amid Brexit dilemma

The United Kingdom’s gilts traded mixed during Tuesday’s afternoon session after the country’s construction PMI for the month of November remained tad higher, also slightly above market expectations as well amid ongoing Brexit uncertainties.

The yield on the benchmark 10-year gilts, remained tad higher at 1.318 percent, the super-long 30-year bond yields slumped nearly 5 basis points to 1.979 percent and the yield on the short-term 2-year traded nearly 2-1/2 basis points higher at 0.745 percent by 10:50GMT.

Another day of Brexit skirmishing will see the House of Commons vote on a motion finding the Government in contempt of Parliament  for refusing to publish the full legal advice on the EU-UK agreement received from the Attorney General Geoffrey Cox. That vote could well see the hammy Cox suspended from Parliament for next week’s meaningful vote on the Brexit deal, debate on which is also set to kick off later today.

Further, following the release last week of the Government and BoE assessments of the economic impact of Brexit, Treasury Select Committee hearings scrutinising their work could be of interest too. But there’s already been substantive Brexit news this morning, with the European Court of Justice issuing a preliminary opinion to state that, if the UK so wishes, it could unilaterally decide to revoke its Article 50 notice to pull the plug on the Brexit process, Daiwa Capital Markets reported.

Meanwhile, the FTSE 100 traded 0.45 percent lower at 7,030.13 by 10:55GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -42.69 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex