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14 Apr 2015
UK Gilt yields fall on weaker-than-expected core inflation
FXStreet (Mumbai) - The yields on the short duration and long duration Gilts in the UK fell after the official data showed the core inflation ticked lower in March.
Currently, the 10-year yield trades 3.4 basis points (bps) lower at 1.559%, while the 30-year yield trades 2.9 bps lower at 2.296%. Meanwhile, the 2-year yield, which mimics short-term interest rate expectations fell 1.1 bps to 0.425%.
Gilt prices rose, pushing yields lower after the ONS data in the UK showed Core CPI cooled down to 1.00%, compared to the expected and previous print of 1.2%. Meanwhile, month-on-month and year-on-year CPI matched estimates to remain unchanged.
Apart from the slowdown in the core inflation, the Gilt yields have also been under pressure to election uncertainty in the UK.
Currently, the 10-year yield trades 3.4 basis points (bps) lower at 1.559%, while the 30-year yield trades 2.9 bps lower at 2.296%. Meanwhile, the 2-year yield, which mimics short-term interest rate expectations fell 1.1 bps to 0.425%.
Gilt prices rose, pushing yields lower after the ONS data in the UK showed Core CPI cooled down to 1.00%, compared to the expected and previous print of 1.2%. Meanwhile, month-on-month and year-on-year CPI matched estimates to remain unchanged.
Apart from the slowdown in the core inflation, the Gilt yields have also been under pressure to election uncertainty in the UK.