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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

Although no significant policy.........>

GILT SUMMARY
GILT SUMMARY: Although no significant policy announcements are expected at the
BoE meeting today, a dovish shift in the official economic forecasts would
compound the market reaction to this morning's European Commission economic
forecast report.
- Energy Minister Andrea Leadsom has stated this morning that the government
still plans to present its Brexit motion to parliament on February 14 and that
PM May is negotiating a revised deal with the EU. However, the EU has put on a
united front in recent days, sticking rigidly to its position in refusing to
reopen negotiations of the Withdrawal Agreement.
- Gilts rallied on the back of the EC's downbeat global economic assessment with
yields in the belly of the curve down ~3bps on the day. Current yield levels:
2-year 0.712%, 10-year 1.184%, 30-year 1.703%.
- The Mar-19 gilt future trades at 123.94, 7 ticks off the high.
- Inflation breakevens have had a lift this morning with the 5-year benchmark
trading up to 3.162% from a low of 3.137%.
- The short sterling futures strip is 1.0-3.0 ticks higher.