The UK gilts slumped Thursday as investors poured into safe-haven instruments amid losses in riskier assets including equities and crude oil. Also, traders cashed in profits after relishing a long week rally.
The yield on the benchmark 10-year gilts increased 2 basis points to 0.556 percent, the super-long 40-year bond yield jumped 3 basis points to 1.135 percent and the yield on short-long 2-year bond climbed 2 basis points to 0.162 percent by 10:50 GMT.
The British bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Bank of England's target.
The crude oil prices bounced on expectations that oil exporting countries at an upcoming meeting talk about ways to prop up a market that continues to be dogged by a supply overhang. The International benchmark Brent futures rose 0.54 percent to $46.29 and West Texas Intermediate (WTI) jumped 0.71 percent to $43.80 by 10:00 GMT.
Lastly, markets will remain keen to focus on the next week’s economic data, highlighted by CPI, PPI, employment and retail sales.
Meanwhile, the FTSE 100 traded 0.02 percent higher at 6,915 by 10:50 GMT.
