28 Apr 2015
UK gilt yields fall
FXStreet (Mumbai) - The yields on the short duration and long duration gilts in the UK fell after the official data released today showed the first quarter growth rate fell to the lowest since Q4 2012.
The yield on the 10-year Gilt fell 2.8 basis points to 1.665%, while the 30-year yield declined 1.7 basis points to 2.406%. At the short-end of the curve, the two-year yield which is sensitive to the short-term interest rate expectations, fell 2.1 basis points to 0.491%.
Gilt yields dropped after the data showed showed the growth rate in the first quarter of 2015 slowed to 0.3% quarter-on-quarter, compared to the expectation of 0.5%. The previous figure stands unrevised at 0.6%. Meanwhile, the Gilt yields could also come under pressure due to the increased possibility of a hung parliament.
The yield on the 10-year Gilt fell 2.8 basis points to 1.665%, while the 30-year yield declined 1.7 basis points to 2.406%. At the short-end of the curve, the two-year yield which is sensitive to the short-term interest rate expectations, fell 2.1 basis points to 0.491%.
Gilt yields dropped after the data showed showed the growth rate in the first quarter of 2015 slowed to 0.3% quarter-on-quarter, compared to the expectation of 0.5%. The previous figure stands unrevised at 0.6%. Meanwhile, the Gilt yields could also come under pressure due to the increased possibility of a hung parliament.