The UK government bonds will likely drop, sending yields higher, as Prime Minister Johnson’slandlisde victory, as predicted by exit polls, is seen removing the cloud of Brexit uncertainty that has been weighing over the UK economy since June 2016.
Also, the US treasury yields are rising on impending the US-China trade deal and will likely bolster the bullish pressures around the Gilt yields.
At press time, the yield on the US 10-year note is trading at 1.91%, representing a 14 basis point gain on the low of 1.77% registered during the US trading hours on Thursday.
The UK 10-year Gilt yield closed at 0.822% on Thursday and is likely to gap higher on Friday.
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