17 Mar 2015
And the fall in the UK Gilt yield continues
FXStreet (Mumbai) - The yields on the long duration as well as the short duration Gilt yields in the UK continue to decline on speculation of a delay in the interest rate hike after Bank of England governor Mike Carney expressed concerns regarding strength in the Pound last week.
The 10-year yield fell another 2.3 basis points (bps) to 1.654%, while the 30-year yield dropped 4.2 bps to 2.427%. The 2-year yield, which represents short-term interest rate expectations, is down marginally at 0.465%. Similarly, the 1-year yield is down marginally at 0.376%.
Moreover, the yields at the short-end of the curve in the UK appear more resilient. Moreover, Carney had reiterated last week that gradual rate hike would probably be the next policy move, although his concerns regarding strength in the Pound were read by markets as a hint that the rate hike could be delayed. The confusion regarding the interest rate forward guidance may continue to weigh over Gilt yields.
The 10-year yield fell another 2.3 basis points (bps) to 1.654%, while the 30-year yield dropped 4.2 bps to 2.427%. The 2-year yield, which represents short-term interest rate expectations, is down marginally at 0.465%. Similarly, the 1-year yield is down marginally at 0.376%.
Moreover, the yields at the short-end of the curve in the UK appear more resilient. Moreover, Carney had reiterated last week that gradual rate hike would probably be the next policy move, although his concerns regarding strength in the Pound were read by markets as a hint that the rate hike could be delayed. The confusion regarding the interest rate forward guidance may continue to weigh over Gilt yields.