25 Feb 2015
UK Gilt yields fall, while Pound shines
FXStreet (Mumbai) - The yields at the short-end as well as the long-end of the UK Gilt yield curve declined, taking cues from the sharp fall in the US Treasury yields post Fed chief’s dovish testimony on Tuesday.
The 10-year Gilt yield in the UK declined 6.3 basis points (bps) to 1.699%, while the 30-year yield fell 6.2 bps to 2.394%. At the short-end, the 2-year yield, which mimics the short-term interest rate expectations, fell 1.1 basis points to 0.4%, while the 1-year yield stayed positive at 0.314%. Meanwhile, the US Treasury yields fell 2.8 basis points to 1.958%.
Moreover, the benchmark yields across most of the advanced nations fell into losses after Yellen’s dovish testimony on Tuesday. The Gilt yields failed to strengthen even though Bank of England governor Carney stated rate hike as the next possible move on Tuesday. However, despite losses in the 10-year yield, the GBP/USD pair rose 0.37% to 1.5510 levels.
The 10-year Gilt yield in the UK declined 6.3 basis points (bps) to 1.699%, while the 30-year yield fell 6.2 bps to 2.394%. At the short-end, the 2-year yield, which mimics the short-term interest rate expectations, fell 1.1 basis points to 0.4%, while the 1-year yield stayed positive at 0.314%. Meanwhile, the US Treasury yields fell 2.8 basis points to 1.958%.
Moreover, the benchmark yields across most of the advanced nations fell into losses after Yellen’s dovish testimony on Tuesday. The Gilt yields failed to strengthen even though Bank of England governor Carney stated rate hike as the next possible move on Tuesday. However, despite losses in the 10-year yield, the GBP/USD pair rose 0.37% to 1.5510 levels.