Gilts Steady After Above-Forecast U.K. PMI Data

Dow Jones10-23 18:00

1000 GMT - Yields on U.K. government bonds, or gilts, trade steady, reversing earlier falls after October's flash U.K. purchasing managers' index came in above forecasts. Gilts underperform eurozone peers, where yields fall after weaker-than-expected eurozone PMI data. The U.K. composite PMI index of business activity rose to 53.1 in October, above the consensus forecast of 52.7 in a WSJ survey. This adds to recent evidence of a robust economy and shows strong inflationary pressures, increasing expectations that the Bank of England will raise interest rates next month and potentially again early next year. Gilt investors remain wary ahead of next week's U.K. budget. The 10-year gilt yield is little changed at 5.328%, Tradeweb data show.

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