UK gilt futures reverse early losses after lower-than-expected inflation data

LONDON: British gilt futures reversed losses in early trade on Tuesday after inflation fell more sharply than expected in May to a 4-1/2 year low.

Consumer price inflation dropped to 1.5 percent last month from 1.8 percent in April, its lowest level since October 2009, the Office for National Statistics said.

Economists in a Reuters poll had expected the index to fall to 1.7 percent.

Following the data, British gilt futures jumped to a session-high of 109.21, having traded around 108.98 before the release.

It was last up 10 ticks on the day at 109.14.