13 Jan 2015
UK 10-yr Gilt yield at 28-month low
FXStreet (Mumbai) - The 10-yr gilt yield in the UK extended losses to trade at a level last seen in August 2012 as the markets price-in a delay in the interest rate hike in the UK due to weak CPI data.
The 10-yr yield retreated 5.2 basis points to trade at 1.524%, compared to the previous session’s close at 1.574%. The yield had hit a 28-month low in the previous session since markets were expecting the CPI data in the UK to show a slowdown in the price pressures. Thus, losses were extended today ahead of the data, which showed CPI at 0.5% year-on-year in December; well below the expected print of 0.7%, and down from the November’s 1%. Consequently, the yield hit a low of 1.506% post the data. However, an uptick in the core inflation number may have restricted further losses in the yield.
10-yr yield Technical Levels
The immediate resistance is seen at 1.610%, above which gains could be extended to 1.694%. Meanwhile, support is seen at 1.471% and 1.408%.
The 10-yr yield retreated 5.2 basis points to trade at 1.524%, compared to the previous session’s close at 1.574%. The yield had hit a 28-month low in the previous session since markets were expecting the CPI data in the UK to show a slowdown in the price pressures. Thus, losses were extended today ahead of the data, which showed CPI at 0.5% year-on-year in December; well below the expected print of 0.7%, and down from the November’s 1%. Consequently, the yield hit a low of 1.506% post the data. However, an uptick in the core inflation number may have restricted further losses in the yield.
10-yr yield Technical Levels
The immediate resistance is seen at 1.610%, above which gains could be extended to 1.694%. Meanwhile, support is seen at 1.471% and 1.408%.