GILTS gave up Monday’s gains as a dip in oil prices beneath $60 a barrel and rallying equity markets took away the props behind the previous session’s gains.
With gilt yields touching a low on Monday, sellers swiftly reappeared on an early surge in the FTSE 100 and a faltering in crude futures ahead of today’s US oil inventory data.
A lack of fresh domestic data also encouraged profit taking, with most investors preferring to sit on gains ahead of today’s UK consumer lending figures. A weaker euro and a dip in US Treasuries on a better than expected US consumer confidence survey provided further momentum to the selling. The September gilt future shed 44p at £113.67 on turnover in 55,000 lots. Treasury 4¾ per cent 2010 lost 22p at £102.70, although Treasury 6 per cent 2028, off 67p at £ 125.95, found some support from quarter-end reinvestment.
EIB increased the size of its 4¾ per cent 2018 bond by £100 million through HSBC. Marylebone Warwick Balfour, the property group, sold a £30 million 9¾ per cent 2012 bond.