Free Trial

Bear Steepening


Gilts have trade weaker through the day and the curve has bear steepened.

  • Cash yields are now 1-3bp higher on the day with the long-end underperforming. The 2s30s spread is 3bp wider. Last yields: 2-year -0.0259%, 5-year 0.0198%, 10-year 0.3408%, 30-year 0.9360%.
  • The Dec-20 gilt future trades at 134.75, 4 ticks off the day's low.
  • Short sterling futures are broadly 0.5-1.5 ticks lower in whites/reds/greens/blues.
  • The DMO sold GBP2.25bn of the 0.625% Jul-35 Gilt with bid-to-cover of 2.44x. The PAOF was not taken up.
  • The BoE purchased GBP1.473bn of medium-dated gilts with an offer-to-cover ratio of 2.72x.
  • Data published earlier this morning showed a slightly stronger than expected CPI print for October (0.7% Y/Y vs 0.5% survey).

To read the full story



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.