UK gilts trade mixed in muted session ahead of G20 Summit

The United Kingdom’s gilts traded mixed during Friday’s afternoon session amid a muted day that witnessed data of little economic significance ahead of the G20 summit which shall provide further direction to the debt market.

The yield on the benchmark 10-year gilts, fell 2 basis points to 1.347 percent, the super-long 30-year bond yields rose nearly 1-1/2 basis points to 2.017 percent and the yield on the short-term 2-year traded tad higher at 0.748 percent by 09:40GMT.

The only data release of note from the UK today is the Lloyds Business Barometer, which has already been released this morning. Following a sharp drop in October to 19, the lowest level since August 2017, the headline index recovered some of the lost ground this month, bouncing back to 24, Daiwa Capital Markets reported.

Satisfaction with current economic conditions was stronger than last month, although the relevant indicator remained well below its average so far in 2018. And while business activity expectations also improved on the month, their respective index remained down on levels seen in the first half of the year. So, despite the suggestion of an overall improvement in business conditions, the survey remained consistent with a weak momentum in the UK economy in Q4.

Meanwhile, the FTSE 100 traded 0.82 percent lower at 6,983.01 by 09:50GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 8.58 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex