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16 Dec 2014
UK Gilt yield falls after CPI data
FXStreet (Mumbai) - The 10-yr Gilt yield in the UK weakened after the data showed inflation faced by households in the UK cooled down in November.
The 10-yr Gilt yield traded 4.5 basis points lower at 1.76% at the time of writing, compared to the previous session’s close of 1.812%. The yields extended losses after the official data showed the CPI increased 1% year-on-year in November, missing the median estimate of 1.2%, down from 1.3% in October.
Earlier today, Bank of England governor Mike Carney once again expressed a high possibility of a fall in inflation expectations in the near-term. His comments triggered the weakness in the Gilt yield, which was extended after a weaker-than-expected CPI data hit the wires. Moreover, falling CPI as well as the inflation expectations erased the rate hike bets.
UK 10-yr Gilt yield Technical Levels
The yield has an immediate support located at 1.72% (March 2013 low), under which it can extend losses to 1.672% (Nov 2012 low). Meanwhile, resistance is seen at 1.8% and 1.842% respectively.
The 10-yr Gilt yield traded 4.5 basis points lower at 1.76% at the time of writing, compared to the previous session’s close of 1.812%. The yields extended losses after the official data showed the CPI increased 1% year-on-year in November, missing the median estimate of 1.2%, down from 1.3% in October.
Earlier today, Bank of England governor Mike Carney once again expressed a high possibility of a fall in inflation expectations in the near-term. His comments triggered the weakness in the Gilt yield, which was extended after a weaker-than-expected CPI data hit the wires. Moreover, falling CPI as well as the inflation expectations erased the rate hike bets.
UK 10-yr Gilt yield Technical Levels
The yield has an immediate support located at 1.72% (March 2013 low), under which it can extend losses to 1.672% (Nov 2012 low). Meanwhile, resistance is seen at 1.8% and 1.842% respectively.