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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.
GILTS
- It's been another day of gilts under pressure after comments from BOE Governor Bailey last night that funds had three days left to effectively get their house in order - and confirmation that bond purchases would cease after the end of this week. The Bank has since reiterated that these purchases would end this week.
- Interestingly, front-end yields have been falling today, with 2-year gilt yields actually 6.4bp lower on the day.
- However, we are seeing gilts in the 15-25 year segment of the curve trading with yields above 5%.
- It appears as though the Bank isn't too concerns about what will happen when its purchases end - but we will be watching the uptake in today's long-dated purchase operations closely to see if there is any change here. (See our earlier comment on why the takeup has been low so far).
- Note that the 10s30s curve is now back up at 43.9bp - around 75bp off the lows seen at the turn of the month, and back above the pre-"Growth Plan" range.
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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