UK gilts jump after Q3 preliminary GDP remains unchanged

The UK gilts jumped after the country’s third-quarter gross domestic product (GDP) remained unchanged compared to that in the second quarter, although meeting market expectations as households spending increased at the fastest pace in a year.        

The yield on the benchmark 10-year gilts, slumped 2 basis points to 1.25 percent, the super-long 30-year bond yields also slipped nearly 1 basis point to 1.82 percent and the yield on the short-term 2-year too traded 2 basis points lower at 0.44 percent by 10:30GMT.

The Office for National Statistics (ONS) reported that Britain's gross domestic product (GDP) grew 0.4 percent on a quarterly basis in the three months to the end of September, up from the 0.3 percent recorded in the previous quarter and unchanged from the preliminary estimate released last month.

On a year-on-year basis, meanwhile, Britain's economy expanded 1.5 percent in the third quarter, matching both last month's estimate and the rate of expansion recorded in the corresponding period 12 months ago.

Meanwhile, the FTSE 100 traded -0.14 percent lower at 7,408.00 by 10:35 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained slightly bullish at -85.91 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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