Despite the headlines of temporary BoE long-end Gilt purchases to calm the market, the curve basically moved in parallel on the BoE announcement, with yields dropping as much as 34bp from 2s through 30s, with a bit of a steepening initially and now flattening.
- It may have taken a few minutes for traders to digest the news. The curve is now decisively flattening though. 10s30s - after hitting post-1998 high earlier in the session above 55bp; - last 40.7bp, 9+bp flatter since prior to the announcement. See daily chart below.
UK 10s30s spreadSource: BBG