21 Jan 2015
UK Gilt yield curve steepens after BOE minutes
FXStreet (Mumbai) - The yields at the short-end of the UK Gilt yield curve fell sharply, while those at the long-end remained relatively resilient after the Bank of England (BOE) minutes reduced probability of a rate hike this year.
The Bank of England January minutes showed a unanimous vote for holding the interest rates at record lows. The two dissenters - MacCafferty and Weale - dumped their rate hike vote in the January meeting. Consequently, short duration yields, which mimic short-term interest rate expectations, fell sharply.
The 2-year yield is down 1.7 basis points at 0.376%, while the 1-year yield is down 2.2 basis points at 0.305%. On the contrary, the long duration yields are relatively resilient, courtesy of a better-than-expected employment data. The 10-yr yield is largely unchanged at 1.535%, while the 15-year yield is up 1.6 basis points at 1.869%. Similarly, the 30-year yield is up 2.4 basis points at 2.198%.
The Bank of England January minutes showed a unanimous vote for holding the interest rates at record lows. The two dissenters - MacCafferty and Weale - dumped their rate hike vote in the January meeting. Consequently, short duration yields, which mimic short-term interest rate expectations, fell sharply.
The 2-year yield is down 1.7 basis points at 0.376%, while the 1-year yield is down 2.2 basis points at 0.305%. On the contrary, the long duration yields are relatively resilient, courtesy of a better-than-expected employment data. The 10-yr yield is largely unchanged at 1.535%, while the 15-year yield is up 1.6 basis points at 1.869%. Similarly, the 30-year yield is up 2.4 basis points at 2.198%.