BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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EGB/Gilt

BOND SUMMARY
  • European fixed income has seen a strong bid today with no real underlying headline drivers. Some are pointing to comments from ECB Chief Economist Lane yesterday who said that the level of the euro "does matter" as a hint that more ECB easing is in the pipeline. While Brexit talks and UK politics are not helping sentiment either and could see monetary policy need to step in in the UK too.
  • Equities are up against this backdrop (potentially hoping for more central bank action too but also possibly positioning ahead of the US labour market report due Friday).
  • Supply is heavy for EGBs (although we note the E50bln of Italian and German redemptions and coupon payments due this week). The German 10-year Green bond has been syndicated today with a size of EUR6.5bln (higher than the EUR4-6bln expectations). We have also seen E3.3bln of Bobls allotted this morning. Books for the 10-year GGB reopening were over EUR16bln on the latest update with an expected deal size of EUR3.0-4.5bln. Tomorrow sees Spain and France come to the market for another EUR13.25-16.75bln.
  • It will be a busy day for the UK with PMQs returning after the summer recess and five MPC appearances. Governor Bailey, Ramsden and Vlieghe will all testify before the Treasury Select Committee, kicking off at 14:00BST. While this event continues Broadbent will give the keynote speech at the CEBRA Annual meeting at 15:30BST followed by Bank Chief Economist Haldane chairing a panel beginning at 1630BST.
  • Gilt futures are up 0.47 at 135.51 with Bund futures up 0.60 at 176.32, BTP futures up 0.73 at 147.42 and OAT futures up 0.64 at 168.30.
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