UK gilts pare losses after ECB LTRO announcement

LONDON: British gilts pared losses on Friday after the European Central Bank announced banks would make 62.8 billion euros' worth of early repayments of three-year banking sector loans.

The repayment came in below the 130 billion-euro Reuters poll consensus and means the level of surplus liquidity in the banking system, currently keeping interbank lending rates low, is likely to drain more slowly than expected.

At 1121 GMT, the March gilt future was 13 ticks lower on the day at 115.95, having traded 29 ticks down on the day just before the announcement.