UK's 10-year gilt yield dips under 1% to 30-month low

Monday, 25. March 2019 18:01

Prices of sovereign debt of the United Kingdom advanced on Monday toward the end of the trading session after Prime Minister Theresa May acknowledged the lack of votes in Parliament to adopt the deal with the European Union about the country's withdrawal. One of the major stumbling blocks is the refusal of the Democratic Unionist Party of Northern Ireland, which nominally supports her minority government, to back the arrangement. Jeremy Corbyn, leader of the Labour Party, reiterated his opposition to the plan but also indicated there is room for negotiation.

The UK two-year note rose significantly, taking the yield 1.5 basis points lower to 0.646% at 5:57 pm CET. The ten-year measure dropped 2.6 points to 0.989% after touching 0.981% for the first time since September 2017 on a closing basis. The government's 30-year bonds yielded 1.478% or 1.1 points less for the day.

Germany's two-year note yield was slightly lower at a negative 0.564%. The ten-year gauge was down 1.5% at 0.026% below zero, compared to the 1.5-point drop in the 30-year yield to 0.586%.

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