UK gilts slump after retail sales beat market expectations in October; BoE Governor Carney’s speech in focus

The UK gilts slumped Thursday after the country’s retail sales beat market expectations during the month of October. Also, investors are looking forward to Bank of England’s (BoE) Governor Mark Carney’s speech, scheduled for later in the day.          

The yield on the benchmark 10-year gilts, rose 1-1/2 basis points to 1.29 percent, the super-long 30-year bond yields also climbed nearly 1-1/2 basis points to 1.87 percent and the yield on the short-term 2-year too traded nearly 1 basis point higher at 0.48 percent by 09:50GMT.

The quantity bought in October 2017 increased by 0.3 percent compared with September 2017; non-food stores, in particular, second-hand goods stores (charity shops, auction houses, antiques and fine art dealers) provided the largest contribution to this growth.

The longer-term picture as shown by the year-on-year growth rate shows the quantity bought fell by 0.3 percent in comparison with a strong October 2016; food stores provided the largest contribution to this fall.

Average store prices increased by 3.1 percent compared with October 2016, with the largest contribution from food stores where average prices rose by 3.5 percent, the largest year-on-year price increase since September 2013.

Meanwhile, the FTSE 100 traded flat at 7,372.75 by 09:55 GMT, while at 09:00GMT, the FxWirePro's Hourly Pound Strength Index remained neutral at 46.58 (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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