The UK gilts traded mixed Wednesday after the country’s manufacturing production for the month of February disappointed market expectations, while trade balance for the similar period beat consensus estimates.
The yield on the benchmark 10-year gilts, rose 1/2 basis point to 1.41 percent, the super-long 30-year bond yields slipped nearly 1 basis point to 1.79 percent while the yield on the short-term 2-year traded 2-1/2 basis points higher at 0.91 percent by 09:15GMT.
The country’s Factory production declined 0.2 percent from January when output was unchanged, the Office for National Statistics said Wednesday. Overall industrial production rose a smaller-than-forecast 0.1 percent as below-average temperatures boosted demand for energy.
Seven out of 13 manufacturing sectors saw output decline in February, with machinery and equipment dropping 3.9 percent after a strong January. In the latest three months, factory output rose 0.6 percent, the least since July.
Lastly, the UK goods trade balance came in at -GBP10.20 billion in February, versus -GBP11.95 billion market expectations and -GBP12.23 billion seen in January. Total trade balance came in at -GBP0.96 billion in February versus -GBP2.95 billion previous.
Meanwhile, the FTSE 100 traded flat at 7,268.25 by 09:20 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at -13.49 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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