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UK Ten-year Gilt yield slightly up from June 2013 lows

FXStreet (Mumbai) - The Ten-year Gilt yield in the UK is trading slightly up today tracking the gains in the US Treasury yields. Yesterday, the yields had hit a low of 1.935, a level not seen since June 2013.

The Ten-year Gilt prices have rallied since the middle of September this year, pushing the yield down from 2.60% to the current level of 1.997%. The fall in the ten-year yield accelerated earlier this week after the UK CPI inflation in September hit five-year low of 1.2%. The falling inflation coupled with the threat of a global growth slowdown and falling crude prices has led the bond markets to bet that the Bank of England would delay the first interest by a considerable amount of time.

Moreover, the decline in the Gilt yields has been in line with the fall in the benchmark bond yields across the globe.

Ten-year Gilt Yield Technical levels

The yield has an immediate support of 1.935%, below which it can fall to 1.838%. On the flip side, yields can rally to 2.07% if the immediate resistance of 2.026% is taken out.

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