Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
U.S. Inflation Surges in March as Iran War and Tariffs Drive Prices Higher 
U.S. Futures Dip as Iran Ceasefire Faces Early Challenges 
RBI Holds Interest Rates Steady Amid Middle East Tensions and Global Uncertainty 
China Set to Exit Deflation Cycle in Early 2026, ANZ Analysts Say 
Japan Consumer Confidence Drops Sharply Amid Rising Fuel Costs and Middle East Tensions 
Xi Jinping Pushes Demand-Driven Strategy to Modernize China's Service Sector 
Gold Prices Dip Amid Middle East Uncertainty and Inflation Fears 
China's Factory-Gate Prices Rise for First Time in Over Three Years Amid Global Cost Pressures 
U.S. Stock Futures Surge as Trump Announces Iran Ceasefire, Oil Prices Plunge 
Oil Prices Rebound as Hormuz Disruptions and Middle East Tensions Rattle Markets 
U.S. Futures Slip as Iran Ceasefire Uncertainty and CPI Data Weigh on Markets 
The UK gilts plunged Monday after investors largely shrugged-off lower-than-expected services Purchasing Managers’ Index (PMI) for the month of May, released earlier today. Also, investors are eyeing the 5-year auction, scheduled to be held on June 6, for further direction in the debt market.
In addition, the upcoming snap election in the country, scheduled for June 8 as was declared by Prime Minister Theresa May has added further uncertainties and clouded the outlook for the money market.
The yield on the benchmark 10-year gilts, jumped 3 basis points to 1.06 percent, the super-long 30-year bond yields also climbed 3 basis points to 1.72 percent and the yield on the short-term 2-year traded 1 basis point higher at 0.12 percent by 10:20 GMT.
The headline seasonally adjusted IHS Markit/CIPS Services PMI Business Activity Index registered 53.8 in May, to remain above the 50.0 no-change value for the tenth consecutive month. However, the index dropped from 55.8 in April and signalled the slowest expansion of service sector output since February.
Following the weekend’s tragic attacks in London, official election campaigning has now resumed ahead of the vote on Thursday. While Prime Minister Theresa May’s Conservative Party is still widely expected to take the largest share of the vote, recent polls have flagged significant uncertainty about the precise outcome, suggesting that it might be a tighter run race than initially thought.
Indeed, several polls suggest that May’s lead had narrowed considerably from when she first called the election, with the latest YouGov poll giving the Tories only a single-digit percentage lead, down from around 20 percentage points in mid-April.
Meanwhile, the FTSE 100 fell 0.35 percent or 25.88 points to 7,521.75 by 10:20 GMT, while at 10:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 13.44 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
