India unlikely to witness recovery in consumption or investment growth owing to sluggish demand, says ANZ research
Yuan exchange rate likely to be defended by Chinese regulators as long as trade talks continue, says Scotiabank
UK gilts surge after August consumer price inflation disappoints investors; BoE’s policy decision in focus
Government bonds likely to benefit less from ‘safe haven’ inflows going forward due to worries over valuation and volatility, says DNB Markets
U.S. Treasury yields slump on hopes of 25bp Fed rate cut; Chair Powell’s post-conference speech eyed
Developments surrounding Brexit do not justify a GBP rally seen since mid-August, keep close eye on options market: Commerzbank
EM Asian currencies likely to advance if US and China make concrete progress in renewed trade negotiations, says Scotiabank
UK 2-10Y gilt yield inversion raises further concerns on global growth outlook, dragged by lower U.S. yields
The United Kingdom’s 2-10Y gilt yields inverted during European trading hours Friday, intrigued by the global growth concerns and uncertainties over U.S.-China trade relations, although President Trump said that he has a call scheduled “very soon” with Chinese counterpart Xi over trade.
This has been further dragged lower by lower bond yields in the United States, with the 10-year benchmark briefly dropping to a three-year low below 1.50 percent yesterday.
The yield on the benchmark 10-year gilts, jumped 5 basis points to 0.459 percent, the 30-year yield slipped nearly 1 basis point to 0.945 percent and the yield on the short-term 2-year surged nearly 7-1/2 basis points to 0.520 percent by 10:15GMT.
The move lower in US bond yields (despite a short-lived bounce following yesterday’s better-than-expected US retail sales report for July) continued to drag down yields elsewhere, Lloyds Bank reported.
In the UK, 10-year gilt yields dropped below their 2-year equivalent for the first time since 2008. The moves were seen as reflecting growing concerns of a global economic recession and occurred despite a better than expected July UK retail sales report, the report added.
Meanwhile, the FTSE 100 traded tad 0.30 percent higher at 7,088.54 by 10:20GMT.