UK gilts gain as investors remain optimistic on Brexit deal amid otherwise muted trading hours

The United Kingdom’s gilts gained during European trading hours Tuesday as investors remained optimistic over the Brexit deal, deadlined for October 31 amid an otherwise muted session that barely witnessed any data of major economic significance.

The yield on the benchmark 10-year gilts, slumped 2-1/2 basis points to 0.726 percent, the 30-year yield slipped 1 basis point to 1.241 percent and the yield on the short-term 2-year suffered 2 basis points at 0.546 percent by 11:15GMT.

Following House of Commons Speaker Bercow’s decision not to allow a meaningful vote on Monday on the Brexit deal, the Government released the text of the Withdrawal Agreement Bill (WAB). As such, two key votes look set to take place on the WAB. The first is the “second reading” motion, Lloyds Bank reported.

Media reports claim that it will be a key indication whether the Commons backs the deal. If that passes the HoC will then vote on a programme motion. That will commit to the Bill passing its Commons stages by Friday, which would mean it would be on course to be passed before the October 31 Brexit date, the report added.

Meanwhile, the FTSE 100 remained nearly flat at 7,160.19 by 11:20GMT.