FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The U.K government bonds strengthened Friday on following weak crude oil prices. Also, rising worries about the up-coming June referendum shifted investors toward safe-haven assets. The yield on the benchmark 10-year bonds, which moves inversely to its price fell 2bps to 1.442 pct and the yield on the 2-year bonds dipped 1bps to 0.412 pct by 0855 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. Today, crude oil prices tumbled overnight on profit booking and surging dollar that at least temporarily outweighed output after wildfire in Canada disrupted its oil sands production, while escalating fighting in Libya threatened the North African nation's output. The International benchmark Brent futures fell 0.29 pct to $44.84 and West Texas Intermediate (WTI) dipped 0.83 pct to $ 43.95 by 0855 GMT.
Yesterday, the British April services sector PMI fell to 52.3 (lowest since Feb 2013), below the market consensus of 53.5, as compared to 53.7 in March. The instability encompassing the EU choice has begun to take a toll on general economic activity, with the risk now that second quarter growth eases back to close stagnation. On Wednesday, the United Kingdom April construction PMI declined to 52 (nearly 3-year low), against market expectation of 54, from 54.2 in March.
In a new EU referendum poll by ICM published in the Sunday Sun, the Brexit side leads by 46 pct to 43 pct and remaining 11 pct are still undecided. While 45 pct said that immigration in United Kingdom is the biggest factor in the vote.
The markets will now focus on the next week’s Bank of England May interest rate decision on Thursday (1100 GMT). Meanwhile, The FTSE 100 fell 0.41 pct or 25.25 points to 6,092 by 0855 GMT.
