18 Feb 2015
UK 10-year Gilt yield rises to 7-week high
FXStreet (Mumbai) - The 10-year UK Gilt yield rose to a seven-week high as rate hike expectations as per interest rate futures shifted to early Q1 2016 from late Q3 2016 seen in January.
The 10-year yield currently trades 5.1 basis points higher at 1.817%. The yields got a shot in the arm after the upbeat labour market report and MPC minutes. Both the jobs report and the MPC minutes painted an optimistic picture of the UK economy, especially with average weekly earnings showing a sharp rise amid falling inflation number.
Meanwhile, the 2-year yield, which mimics interest rate expectations in the economy, gained 2.7 basis points to trade at 0.43%.
UK 10-year yield Technical Levels
The immediate resistance is located at 1.835% (100-DMA), above which another major resistance is seen at 2.139 (200-DMA). Meanwhile, support is seen at 1.751% and 1.618% (50-DMA).
The 10-year yield currently trades 5.1 basis points higher at 1.817%. The yields got a shot in the arm after the upbeat labour market report and MPC minutes. Both the jobs report and the MPC minutes painted an optimistic picture of the UK economy, especially with average weekly earnings showing a sharp rise amid falling inflation number.
Meanwhile, the 2-year yield, which mimics interest rate expectations in the economy, gained 2.7 basis points to trade at 0.43%.
UK 10-year yield Technical Levels
The immediate resistance is located at 1.835% (100-DMA), above which another major resistance is seen at 2.139 (200-DMA). Meanwhile, support is seen at 1.751% and 1.618% (50-DMA).