The UK gilts continue to hover at record low Friday, after testing its all-time low of 1.23 percent from February on Thursday and it is likely to come down to 1.20 percent in light of looming Brexit risk.
In Europe and the US there are no major data releases today leaving traders to expect a continued quiet trading day ahead.
Meanwhile, the yield on the benchmark 10-year gilts fell 1 basis point to 1.235 percent by 10:55 GMT.
In the global debt market, the benchmark 10-year US Treasury note yield fell near to 3 basis points to 1.678 percent mark for the first time since February. The German 10-year bund yields fell to a new record low of 0.025 percent, after testing its 2015 low of 0.05 percent and it likely to test zero next week.
The recent polls showed the outcome of the referendum is too close to call, raising the possibility that Britain might leave the EU after 43 years of membership in the bloc. A new UK EU poll by ORB for the Telegraph, among people saying they will definitely vote in the referendum on the 23rd, 48 percent said they will vote to remain and 47 percent to leave the union. Moreover, the WTO director general Azevedo said that the UK business competitiveness will be badly hit if the country votes to leave the EU. He adds that although trade will continue, it could be on worse/costlier terms.
Today, crude oil prices fell on a stronger dollar, after jumping beyond $51 mark on Thursday. The International benchmark Brent futures fell 0.83 percent to $51.52 and West Texas Intermediate (WTI) dipped 1.03 percent to $50.04 by 07:30 GMT.
Looking ahead, markets will remain keen to focus on next week’s May CPI on Tuesday (08:30 GMT), May claimant count change and unemployment rate on Wednesday (08:30 GMT), retail sales and BoE interest rate decision on Thursday.
Meanwhile, The FTSE 100 trading down 1.54 at 6,136 by 10:55 GMT.
The material has been provided by InstaForex Company – www.instaforex.com