A SHARPER than expected rebound in UK retail sales in January sent gilts lower for the fifth successive session.
After Wednesday’s retreat on more hawkish than expected comments from Alan Greesnpan, investor attention returned to the domestic market on the publication by the Office for National Statistics of data showing a 0.9 per cent rise in retail sales last month, against expectations of a 0.8 per cent increase.
That selling persisted into the afternoon but moderated on the release by the Conference Board of a weaker than expected index of leading economic indicators.
The March gilt future shed 27p at £110.84 on turnover in 59,000 contracts. Treasury 4 per cent 2009 lost 8p at £97.77, with Treasury 6 per cent 2028 off 44p to £122.12.
There was no new issuance in sterling, while Ireland sold a $500 million 3.875 per cent 2010 bond, its first offering in the US currency for 11 years. The republic is issuing paper in US dollars and swapping the proceeds into euros to reduce its funding costs.