The UK gilts slumped Monday following weakness in the United States Treasury prices. Treasury yields rose after FBI Director James Coney said that the case against U.S. Democrat presidential candidate Hillary Clinton mishandling classified emails is closed again.
The yield on the benchmark 10-year gilts, which moves inversely to its price, rose 3 basis points to 1.817 percent, the super-long 30-year bond yield climbed 2-1/2 basis points to 2.593 percent and the yield on short-term 2-year bounced nearly 3 basis points to 0.826 percent by 11:00 GMT.
Global Treasury yields jumped Monday after FBI Director James Coney released an official statement over the weekend saying that Hillary Clinton has been cleared of all charges, remaining stern in their conclusions expressed in July with respect to Secretary Clinton. This announcement removed clouds of suspicion around her campaign and potential Presidency.
According to latest polls from WSJ/NBC, Clinton is still ahead in the election but Trump is with all the momentum. She is ahead 44 percent to 40 percent in the poll but that's down from 48 percent to 37 percent in a poll from the same firm in mid-October. The survey has Johnson at 6 percent and Stein at 1 percent.
The Bank of England (BoE) left monetary policy unchanged at the November meeting that concluded on last Thursday, maintaining a more hawkish tone than what was anticipated by market participants. The board shifted from an easing bias to a neutral bias, saying that it "can respond in either direction".
Economic data has remained remarkably resilient to the Brexit uncertainties while the steep GBP depreciation means that CPI inflation will increase sharply next year. It seems that the BoE is quite satisfied that its actions have supported the economy and moved inflation back to higher levels consistent with the 2 percent target.
The BoE now expects higher short-term real GDP growth as economic data so far has been resilient. The bank also expects CPI inflation to be higher than the August projections as the GBP has depreciated further. The BoE expects CPI inflation to peak just below 3 percent in the coming years.
Meanwhile, the FTSE 100 traded 1.42 percent higher at 6,788 by 11:00 GMT.


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