Rising UK Wages Buoy the FTSE as Most Bourses Slide

Gilts are outperforming the rest of the European bonds sector in tandem with the FTSE 100 amid a weaker Pound. The 10-year Gilt dropped -2.4 basis points as markets shrugged off the latest BoE Agent report, which saw rising wage pressures amid a shortage in workers, although at the short end, Gilts are underperforming against the Schatz equivalent and the 2-year is slightly higher on the day. In the Eurozone peripheral long yields corrected some of yesterday’s losses and spreads over the German benchmark widened again, although long yields remain at very low levels. Strong ECB demand and limited supply may account for some of the volatility in long peripheral yields this week and with the ECB continuing to pump cash into the system and re-invested redemptions add to demand this may remain a feature as spreads trend narrower.

Continue reading: https://www.iforex.com/news/rising-uk-wages-buoy-ftse-most-bourses-slide-44655

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