LONDON: Gilts fell in early trade on Wednesday in line with German Bunds, shrugging off poor economic data as investors dipped back into riskier assets after strong corporate earnings results overnight.
British consumer confidence fell to its lowest in six months in October, highlighting the fragility of Britain's recovery from recession, a survey by researchers GfK NOP showed on Wednesday.
At 0854 GMT, the December gilt future was 22 ticks lower at 119.17, while its German counterpart was down 17 ticks on the day.
"With Bunds being down a little bit and gilts being down a little bit, it's just a reflection of a slightly better tone for risk in the overnight session," said RBC Capital Markets strategist Sam Hill.
"I think it's just really a follow-through from that sort of more buoyant tone and those riskier assets really," he added.
European stocks rose on Wednesday, helped by bullish earnings from the likes of airline Lufthansa, ahead of the reopening of the US stock market later in the session.
Ten-year gilt yields rose 2 basis points to 1.848 percent, with their spread over Bunds steady at 35 basis points.
Investors will also pay close attention to a speech by BoE Deputy Governor Charlie Bean due at 1800 GMT after market close, for further clues about monetary policy.
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