UK gilts rise modestly on expectations of lower January retail sales

The UK gilts traded modestly higher Thursday following expectations of lower retail sales data during the month of January, scheduled to be released on Friday. Also, investors are awaiting the release of fourth-quarter gross domestic product (GDP), scheduled to be released on February 22.

The yield on the benchmark 10-year gilts, which moves inversely to its price, fell 1/2 basis point to 1.29 percent, the super-long 40-year bond yields also slipped nearly 1/2 basis point to 1.84 percent and the yield on the short-term 4-year traded  flat at 0.37 percent by 09:50 GMT.

Meanwhile, the FTSE 100 fell 0.02 percent to 7,258.50 by 09:40 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bullish at 81.20 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex