UK gilts trade flat in subdued trading session; investors eye 30-year auction

The UK gilts begun week on a flat trading note amid subdued session that witnessed data of little economic significance. Also, investors are curiously eyeing the 30-year super-long bond auction, scheduled to be held on February 9.

The yield on the benchmark 10-year gilts, which moves inversely to its price, fell 1/2 basis point to 1.35 percent, the super-long 30-year bond yields remained flat at 2.02 percent and the yield on short-term 2-year hovered around 0.11 percent by 09:30 GMT.

Further, the UK gilts have been closely following developments in oil markets because of their impact on inflation expectations. The International benchmark Brent futures moved lower 0.07 percent to USD56.78 and West Texas Intermediate (WTI) rose 0.22 percent to USD53.95 by 10:20 GMT.

Lastly, investors also wait to note the country’s trade balance and manufacturing production data, besides Bank of England (BoE) Governor Mark Carney’s speech due on February 10.

Meanwhile, the FTSE 100 rose 0.18 percent to 7,201.50 by 09:40 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained highly bearish at -149.86 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex