FX.co ★ British pound under the pressure of the debt market

GBP / USD

The British pound yesterday, in a dull mood, traded in a small range and closed the day at the opening level. The reason for this mood was the collapse of yields on the market of the British national debt. For the 5-year bonds, the yield decreased from 1.157% to 1.094%, for the 10-year bonds from 1.458% to 1.401%. The decrease in yields occurred on US government bonds, but it was less, so, for 10-year yields fell from 2.976% to 2.948%. The growth of British PMI services from 51.7 to 52.8 (and less than the projected 53.5) and served as a support for the pound from negative closing. Also, investors were waiting for today's data on employment in the US. The forecast for these data is good: the unemployment rate may drop from 4.1% to 4.0% and the Non-Farm Employment Change in the April estimate to show growth of 190 thousand.

We are waiting for the British pound at 1.3435.