MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: ECB Should Be Close To 2% In Next Quarters -Centeno

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI: US NOV IMPORT PRICES +0.1%

MNI: CANADA Q3 INDUSTRIAL CAPACITY UTILIZATION RATE 79.3%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Curve flattens as terminal rate moves lower and FinStab sales are strong

GILTS
  • Gilts today have been pulled higher by two aspects: first they have been pulled higher from a reduction in terminal pricing globally following less hawkish-than-usual comments from ECB's Holzmann. Second, there has been continued (but slow) follow through from yesterday's BOE Financial Stability sales operation in which the vast majority of remaining gilts bought for the "temporary" programme have now been sold back to the market.
  • 2y yields down -4.5bp today at 3.403%, 5y yields down -8.3bp at 3.374%, 10y yields down -9.0bp at 3.465% and 30y yields down -10.6bp at 3.798% as the curve flattens: 2s10s is 4.6bp flatter today at -0.1.bp and while 10s30s is 1.6bp flatter at 33.3bp.
  • Yesterday's BOE Financial Stability Portfolio sales saw huge takeup. In nominal terms only GBP210mln of long-dated gilts (of which GBP180mln is the 0.875% Jan-46 gilt) and GBP363mln of linkers (of which GBP169mln is the 1.25% Nov-27 I/L gilt) remain to be sold. This compares to initial nominal holdings of GBP17.2bln for longs and GBP6.1bln for linkers.
  • Another Financial Stability Portfolio sales operation is due to be held today (results shortly after 15:30GMT) and it is now just a matter of time before the Bank will have completely unwound its holdings.
  • Looking ahead, we will hear from external MPC member Catherine Mann tomorrow as she is due to give a lecture at the Manchester Business School on Thursday entitled “Challenges facing the UK economy, challenges facing monetary policy: a comparative look.” There is no text due to be released from the event, and Mann was the sole hawkish dissenter in December looking for a 75bp hike, so even if she still sounds hawkish it would not necessarily be a concern for the market. It might be more significant if she was to sound less hawkish, however.
  • We also have November activity data due for release on Friday (including monthly GDP).
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

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.