UK gilts trade rebound as investors eye 30-year auction, BoE Governor Carney’s speech in focus

The UK gilts rebounded Tuesday ahead of the 30-year super-long bond auction, scheduled to be held on February 9. Also, investors will remain focused on the Bank of England (BoE) Governor Philip Lowes’s speech due on Friday.

The yield on the benchmark 10-year gilts, which moves inversely to its price, fell 2-1/2 basis points to 1.29 percent, the super-long 30-year bond yields also slumped nearly 2 basis points to 1.99 percent and the yield on short-term 2-year edged lower by 1/2 basis point to 0.09 percent by 09:20 GMT.

Further, the UK gilts have been closely following developments in oil markets because of their impact on inflation expectations. The International benchmark Brent futures moved lower 0.50 percent to USD55.44 and West Texas Intermediate (WTI) fell 0.09 percent to USD52.96 by 09:20 GMT.

Lastly, investors also wait to note the country’s trade balance and manufacturing production data, besides Bank of England (BoE) Governor Mark Carney’s speech due on February 10.

Meanwhile, the FTSE 100 rose 0.59 percent to 7,214.80 by 09:30 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -170.25 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex