Tuesday October 9, 05:40 PM
UK gilts unmoved by neutral pre-budget report
LONDON (Thomson Financial) - UK gilts were unmoved by the Chancellor of the Exchequer Alistair Darling's broadly neutral maiden pre-budget report.
As expected, Darling lowered next year's GDP growth forecast, but predicted the economy would be back on track to achieve most of its targets from 2007's Budget by 2009.
'There was little doubt that the Chancellor would have to revise the 2008 growth forecasts lower,' said Jodie Tiller at CIBC World Markets.
'In light of the election/no election debates heading into this PBR, the measures introduced came as little surprise to the market,' she added.
Meanwhile, the UK Debt Management Office announced it will issue 58.4 bln stg in gilts in 2007/8, the same as announced at the time of the March Budget.
At 5.13 pm, 10-year gilts were trading up 0.34 at 93.56, while December three-month short-sterling futures were flat at 93.89, and the March three-month short-sterling future was down 0.03 at 94.13. All figures were little changed from before the event.
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