The UK gilts rebounded Thursday after British parliamentarians decided to trigger Article 50 of the Lisbon Treaty in the first round of voting held Wednesday, it will take a span of 2 years for the country to separate from the 27-member European Union.
Also, investors are awaiting the Bank of England’s (BoE) monetary policy decision, scheduled to be held later in the day. Markets will then, focus on the comments delivered by BoE Governor Mark Carney post the meeting minutes.
The yield on the benchmark 10-year gilts, which moves inversely to its price, fell 1-1/2 basis points to 1.44 percent, the super-long 30-year bond yields also slid 1 basis point to 2.07 percent and the yield on short-term 2-year moved 1/2 basis point lower to 0.14 percent by 10:20 GMT.
The BoE is widely expected to maintain its interest rate at a historic low of 0.25 percent amid stronger than expected lift in inflation was more broad-based than widely anticipated and recovery in economic growth.
All but one of the 67 economists polled by Reuters expected that the central bank would keep its policy unchanged when it announces the outcome of the latest meeting of its rate-setters on next Thursday.
Lastly, investors also wait to note the country’s retail sales data, scheduled to be released on February 7, besides, trade balance and manufacturing production data as well.
Meanwhile, the FTSE 100 rose 0.12 percent to 7,114.50 by 10:30 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 58.41 (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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