UK gilts plunge as investors eye March retail sales data

The UK gilts plunged Wednesday as investors wait to watch the country’s retail sales during the month of March, scheduled to be released on April 21. Further, Prime Minister Theresa May said that a snap election is needed for Brexit 'stability'. 

The yield on the benchmark 10-year gilts, which moves inversely to its price, jumped nearly 3-1/2 basis points to 1.04 percent, the super-long 30-year bond yields climbed 3 basis points to 1.64 percent while the yield on the short-term 2-year traded nearly 4-1/2 basis points higher at 0.13 percent by 09:50 GMT.

Prime Minister Theresa May has said an early election will give Britain the opportunity for "stability and certainty" during the period of the Brexit process.

During her interview with BBC Radio 4, May said, "Because Brexit isn't just about the letter that says we want to leave, it's about negotiating the deal, about getting the right deal from Europe. The public wants us to deliver on leaving the European Union and they want us to build that stronger Britain for the future beyond leaving the European Union."

Meanwhile, the FTSE 100 rose 0.05 percent or 41.73 points to 7,149.25 by 09:50 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bullish at 110.51 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex