17 Dec 2014
UK 10-yr Gilt Yield marginally up ahead of the BOE minutes
FXStreet (Mumbai) - The benchmark Gilt yield in the UK has strengthened ahead of the release of the Bank of England Monetary Policy Committee (MPC) minutes of the December meeting.
The 10-yr Gilt yield trades 1 basis points higher at 1.79%, compared to the previous session’s close of 1.772%. Nothing surprising is likely to come out of the minutes today. BOE governor Carney has repeatedly talked about the falling inflation expectations. Thus, there will be mention low inflation, low oil prices and headwinds from the domestic housing market risks. Overall the policy minutes are likely to be a dud event, although markets would watch out for any positive comments ahead of the year end.
Meanwhile, the minutes are also likely to show a 7/2 vote on maintaining interest rates at the current levels. The yields may rise sharply, if the number of policy makers in favor of a rate hike is more than two.
UK 10-yr Gilt Yield Technical Levels
The yield has an immediate resistance at 1.797% (Dec. 12 low), above which gains could be extended to 1.864%. Meanwhile, support is seen at 1.772% and 1.694% respectively.
The 10-yr Gilt yield trades 1 basis points higher at 1.79%, compared to the previous session’s close of 1.772%. Nothing surprising is likely to come out of the minutes today. BOE governor Carney has repeatedly talked about the falling inflation expectations. Thus, there will be mention low inflation, low oil prices and headwinds from the domestic housing market risks. Overall the policy minutes are likely to be a dud event, although markets would watch out for any positive comments ahead of the year end.
Meanwhile, the minutes are also likely to show a 7/2 vote on maintaining interest rates at the current levels. The yields may rise sharply, if the number of policy makers in favor of a rate hike is more than two.
UK 10-yr Gilt Yield Technical Levels
The yield has an immediate resistance at 1.797% (Dec. 12 low), above which gains could be extended to 1.864%. Meanwhile, support is seen at 1.772% and 1.694% respectively.