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

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.