LONDON: Gilts settled slightly higher on Thursday after a muted trading session where investors were reluctant to make major bets while international lenders are still at odds over aid for Greece.
Trading volumes were also thin due to the Thanksgiving holiday in the United States.
International lenders have yet to reach an agreement to release more aid to keep Greece afloat although Olli Rehn, the EU commissioner for economic affairs, said on Thursday he saw no reason why the package could not be signed next Monday.
The December gilt future settled 11 ticks higher at 119.43, while the equivalent Bund was little changed.
"I think fundamentally they will get there... The reality is that the euro area nations accept that further aid for Greece in some form or another will be required," said RBC Capital Markets strategist Sam Hill.
"In the grand scheme of things, with the US being out, directionally it's fairly dull."
Britain's Debt Management Office sold 3.25 billion pounds of 2044 index-linked gilts via syndication this session, after attracting orders totalling around 6 billion pounds.
"I don't think that's been as well received as previous syndications in the sense that the order books have been larger than today's," Hill said.
Gilts shrugged off a CBI survey showing that British factory orders improved slightly in November helped by better demand for exports.
Ten-year gilt yields fell 1 basis point to 1.84 percent. Their spread versus Bund yields was a touch tighter at 41 basis points.
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