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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GILTS
The continued downdraft from yesterday’s BoC decision allows 2-Year Gilt yields to register a fresh multi-month high this morning (4.593%), with the cycle highs that stemmed from last year’s “mini-Budget” fiasco (4.729%) presenting the obvious focal point for bears. Note that Gilts have already moved off session cheaps.
- We suggest that the feedthrough from the BoC’s hike probably shouldn’t be as pronounced for UK as it is for some other global FI markets, given that ~100bp of further tightening is priced into the BoE-dated OIS strip i.e. we aren’t near the end of the BoE’s tightening cycle in the market’s eyes.
- Still, when there is a global cheapening impulse the UK’s funding reliance on the kindness of strangers means that Gilts are always susceptible to participating in such a move.
Fig. 1: 2-Year Gilt Yields (%)
Source: MNI - Market News
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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