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5-year gilt yields touch levels last seen on Dec MPC meeting day

GILTS
  • Terminal rate expectations continue to decline in spite of this morning's stronger-than-expected monthly activity print for November.
  • 5-year gilt yields have this morning hit a low of 3.184% - matching the low seen on the day of the last MPC meeting (15 December).
  • Next week is a big week for UK data with both CPI (Tues) and labour market data (Wed) due.
  • If CPI was to fall further than expected and labour market data showed signs of less tightness then the low of 24 November 2022 of 3.073% could start to come into view. This is the lowest 5-year yield have been since mid-September.

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