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Bailey tries to soften guidance on negative rates

BOE

Gilts and short sterling starting to move a bit lower after Bailey said that last week's statement was purely technical in that the BOE should know how to use negative rates rather than an implication that negative rates would be used any time soon.

  • Gilts currently sitting at 136.66 at typing with next support at the Sep 18 low of 136.36. This in itself isn't likely to be enough to get gilts to break through, particularly with the slew of other political/Covid events today (see 8:59BST bullet).

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