The UK gilts traded nearly flat Thursday ahead of third quarter gross domestic product (GDP) data, which is scheduled to be released on Friday at 09:30 GMT.
The yield on the benchmark 10-year gilts, which moves inversely to its price, hovered around 1.44 percent, the super-long 30-year bond yield remained steady at 2.08 percent and the yield on short-term 2-year stood flat at 0.14 percent by 10:40 GMT.
We foresee that the 10-year gilt yield is heading towards 1.50 percent multi-day and then 1.60 percent.
The UK's Office of Budget Responsibility has slashed its UK average GDP growth forecasts to below trend rates of 1.4 percent and 1.7 percent, respectively, for 2017 and 2018, from 2.2 percent and 2.1 percent predicted in the March 2016 Budget.
Average GDP growth for this year is adjusted slightly upward , however, to 2.1 percent from 2.0 percent predicted in March. No recession is forecast, but potential growth is estimated to be 2.4 percentage points lower over the 4-year forecast period than would have been the case had the UK voted to remain in the EU.
Also, the British Prime Minister May commented on Tuesday that she wants to cut corporation tax to the lowest among the world’s 20 largest economies and could cut tax to lower than 15 percent.
Meanwhile, the FTSE 100 traded 0.25 percent lower at 6,800 by 11:00 GMT. While at 11:00 GMT, the FxWirePro's Hourly GBP Strength Index remained highly bullish at +154.80 (higher than +75 represents purely bullish trend).
