UK gilt yields rise ahead of UK CPI data

By FXStreet UK gilts dropped, pushing the yields higher as markets expect a sharper rise in the consumer price index due for release tomorrow.

At the time of writing, the 10-yr yield was up almost 4 basis points (bps) at 1.404%. The short duration 2-yr yield was up more than 2 bps at 0.408%.

The consumer price data is expected slightly higher from the previous month (seen at 0.3% m/m in March from 0.2% in Feb). The core is also seen improving to 1.3% y/y.

However, Bank of England is still seen keeping the rates unchanged and maintain its “wait and watch” approach.
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Source:: FX Street