LONDON: British government bond prices fell to a six-day low on Tuesday after a strong manufacturing release and ahead of a sale of five-year bonds.
British gilt futures hit a six-day low of 109.67, 25 ticks lower on the day not long after a survey showed British manufacturing activity expanded in June at its fastest rate in seven months. Before the data, the future stood at 109.89.
The UK debt agency is poised to sell 4 billion pounds ($6.81 billion) of bonds maturing in 2019, only a week after the syndication of a new 30-year gilt, drew record demand from an overwhelmingly domestic investor base.
"The data was a bit stronger and we have supply coming up in ... A very thin market. It's very quiet," one trader said.
The fall in gilts drove the 10-year yield spread versus German Bunds to 143.9 basis points, just short of the level hit on June 20 which was its highest since 1997.
Ten-year gilt yields also touched a six-day high at 2.70 percent.
Comments
Comments are closed for this article.