UK, German bonds head lower on Brexit concerns

Thursday, 17. January 2019 16:26

Markets suffered a moderate selloff across a variety of assets on Thursday, while the dollar posted minuscule gains against most main currencies. However, the pound moved slightly higher and British sovereign debt securities slipped, lifting yields, following a vote of confidence in Prime Minister Threresa May's cabinet in the country's Parliament. Labour Party leader Jeremy Corbyn expressed willingness to participate in cross-party talks on condition that the United Kingdom's departure from the European Union without a deal is taken out of the equation. The bloc's chief negotiator Michel Barnier once more brushed off the possibility to reopen the Brexit arrangement.

German two-year note yield was slightly up for the day at a negative 0.593% at 4:23 pm CET. The ten-year measure grew to 0.239%, compared to an increase to 0.845% for the 30-year bonds. Corresponding futures prices were down 0.03%, 0.17% and 0.23%, respectively.

The yield on two-year UK notes advanced to 0.83% and the gauge rose to 1.22% for the 10-year gilts. The 30-year bonds yielded 1.836%, a rise of 2.3 basis points since the start of the session.

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