UK gilts surge after June CPI remains unchanged, meets market estimates
The United Kingdom’s gilts surged during European trading hours Wednesday after the country’s consumer price inflation (CPI) for the month of June, released today, remained unchanged from that in May, also meeting market estimates.
Investors will now eye the country’s retail sales for the month of June, scheduled to be released on July 18 by 14:00GMT.
The yield on the benchmark 10-year gilts, plunged 4-1/2 basis points to 0.774 percent, the 30-year yield rose suffered nearly 1-1/2 basis points to 1.395 percent and the yield on the short-term 2-year slumped nearly 4 basis points to 0.549 percent by 10:55GMT.
Britain’s June CPI remained unchanged at an annualised reading of 2 percent y/y in June, matching consensus and in line with May’s reading, also holding steady at the Bank of England’s target inflation rate of 2 percent.
Meanwhile, the FTSE 100 remained tad -0.15 percent lower at 7,565.61 by 11:00GMT