UK 10-year gilt yields near 2-week low post Finance Minister Hammond’s comments

The UK 10-year gilt yields hit near 2-week low on Monday, after the country’s Finance Minister Philip Hammond delivered comments over the ongoing Brexit negotiations.

The yield on the benchmark 10-year gilts, which moves inversely to its price, plunged 3-1/2 basis points to 1.15 percent, the super-long 30-year bond yields slumped 2-1/2 basis points to 1.76 percent and the yield on the short-term 2-year traded lower by nearly 1 basis point at 0.08 percent by 09:30 GMT.

Hammond has warned the UK would “fight back” if the EU blocked a Brexit trade deal. The Chancellor said Britain would not “slink away into a corner” if our demands for market access were not met.

"If there is anybody in the European Union who thinks that if we don’t do a deal with the European Union, if we don’t continue to work closely together, Britain will simply slink off as a wounded animal that is not going to happen," the Chancellor of the Exchequer, Hammond commented.

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 by 0.73 percent to USD55.49 and West Texas Intermediate (WTI) fell 0.83 percent to USD52.89 by 09:30 GMT.

Meanwhile, the FTSE 100 fell 0.26 percent to 7,354.80 by 09:30 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -119.87 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex