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UK Gilt yields continue to slide

FXStreet (Mumbai) - The Gilt prices in the UK extended gains on Monday, thereby pushing the yields lower after the Bank of England (BOE) governor Mike Carney said last week that he is concerned about the disinflationary impact of strong Pound.

At the time of writing, the 10-year Gilt yield fell 2.7 basis points (bps) to 1.682%, while the 30-year yield is down 2.2 bps to 2.492%. At the short-end of the yield curve, the 2-year yield fell 2.5 bps 0.46%, while the 1-year yield fell 2.1 bps to 0.381%.

Moreover, the 10-year yield have declined from a high of 1.964% seen on 6th March to a low of 1.677% today. The sharp decline in the benchmark yield led to a sharp drop in the GBP/USD pair to a low of 1.4698 on Friday.

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