LONDON: British government bonds inched higher on Friday as a gloomy outlook for company earnings and downgrades to French banks' ratings added to concerns over the health of the global economy.
A better than forecast reading of US gross domestic product took the shine off the rise for core European bond markets later in the session.
But the gilt future was still 53 ticks higher at 119.01, broadly in line with the equivalent Bund.
On Thursday gilts had plunged to their lowest level in more than one month after a stronger-than-expected rise in British gross domestic product numbers reduced the chances of another round of quantitative easing bond-buying by the Bank of England.
"It's been really a risk-off day but we've seen some rise in yields just after the US GDP data release," Lloyds strategist Vatsala Datta told Reuters.
"We've seen such sharp moves over the last two days that there had to be some reversal going into the weekend. I think the market is looking for a opportunity to rally again."
Ten-year gilt yields fell 5 basis points to 1.861 percent, with their spread over Bunds largely unchanged around 33 basis points.
European equity markets had slid earlier on Friday as lacklustre corporate earnings reports supported demand for safe haven assets like core government bonds.
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