UK gilts continue to disappoint after reading higher-than-expected February CPI

The UK gilts continued to disappoint Tuesday after reading the higher-than-expected consumer price inflation for the month of February.

The yield on the benchmark 10-year gilts, which moves inversely to its price, jumped 5 basis points to 1.28 percent, the super-long 30-year bond yields climbed 4 basis points to 1.85 percent and the yield on the short-term 2-year traded 5-1/2 basis points higher at 0.14 percent by 10:00 GMT.

UK inflation surged above the Bank of England’s (BoE) 2.0 percent target for the first time in over three years in February, underscoring how consumer spending is likely to be increasingly squeezed by higher prices in 2017.

Official data showed inflation rising to its highest since September 2013. Consumer prices rose 2.3 percent on a year ago in February, according to the Office for National Statistics, the rate of inflation picking up from 1.8 percent in January and just 0.3 percent this time last year.

Meanwhile, the FTSE 100 fell 0.19 percent to 7,413.85 by 10:10 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained slightly bullish at 86.22 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex