UK gilts remain tad higher ahead of January flash PMIs

The United Kingdom’s gilts remained tad higher during European trading hours Wednesday ahead of the country’s flash PMIs for the month of January, scheduled to be released on January 24 by 09:30GMT.

The yield on the benchmark 10-year gilts, suffered 1 basis point to 0.619 percent, the 30-year yield also slipped 1 basis point to 1.140 percent and the yield on the short-term 2-year lost 2 basis points to 0.411 percent by 10:40GMT.

Today will bring further economic data for the Bank of England to chew as it considers the case for a rate cut at next week’s MPC meeting. In particular, the CBI’s latest industrial trends survey will provide an update on manufacturing conditions at the start of the year, Daiwa Capital Markets reported.

While businesses are expected to be somewhat less downbeat about the outlook, the survey is also expected to show a further notable decline in new orders in January suggesting that production is likely to remain subdued at best, the report added.

Meanwhile, the FTSE 100 remained tad 0.18 percent up at 7,625.56 by 10:45GMT.