MNI: PBOC Net Injects CNY309 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1880 Weds; -2.54% Y/Y

MNI BRIEF: Japan H’hold Assets at JPY2,179 Trln End-Sept

MNI: JAPAN NOV EXPORTS +3.8% Y/Y; SEPT +3.1%

MNI CNB WATCH: Policy Hold Seen, Cuts To Start In Q1 2025

MNI NBH WATCH: NBH Holds Rates, Tweaks Inflation Outlook

JAPAN DATA: Japan Nov Exports +3.8% Y/Y; Imports -3.8% Y/Y

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Austria, UK Auction on Jan 7

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

BONDS: EGBs-GILTS CASH CLOSE: Gilts Have Worst Session Since Oct On UK Wage Data

BONDS
BulletMarketsFixed Income Bullets

Gilts sold off Tuesday in a bear steepening move as stronger-than-expected UK wage data pared expected BoE rate cuts.

  • Higher-than-expected UK wage data set a hawkish tone for the session, including private sector regular AWE which at 5.4% 3mY/Y (versus expected 5.0%).
  • The unexpectedly strong wage data offered reason to expect MPC members to be more cautious at this week's meeting, reducing scope for additional dovish dissenters to the expected hold (almost 100% priced) announced Thursday. MNI sees an 8-1 vote to hold, with Dhingra dissenting in favour of a cut.
  • Futures now see under 60bp of cuts through 2025, having pared 15bp from the path today alone. Whereas the first cut had been fully priced by March, it's now seen only by May.
  • Conversely, Bunds were supported by weak IFO survey data, and a less onerous than expected 2025 German funding plan.
  • The UK curve bear flattened on the day as yields rose the most since Oct 31, with Germany's curve twist flattening (with a modest uptick in short-end yields). 10Y Gilt/Bund spread closed at the widest (229bp) since 1990.
  • Periphery / semi-core EGB spreads were little changed.
  • The UK data spree continues Wednesday with CPI (preview here), and the BoE decision looms Thursday. We also get final Eurozone Nov inflation, and an MNI Webcast featuring ECB chief economist Lane.

Closing Yields / 10-Yr EGB Spreads To Germany

Keep reading...Show less
288 words

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.

Gilts sold off Tuesday in a bear steepening move as stronger-than-expected UK wage data pared expected BoE rate cuts.

  • Higher-than-expected UK wage data set a hawkish tone for the session, including private sector regular AWE which at 5.4% 3mY/Y (versus expected 5.0%).
  • The unexpectedly strong wage data offered reason to expect MPC members to be more cautious at this week's meeting, reducing scope for additional dovish dissenters to the expected hold (almost 100% priced) announced Thursday. MNI sees an 8-1 vote to hold, with Dhingra dissenting in favour of a cut.
  • Futures now see under 60bp of cuts through 2025, having pared 15bp from the path today alone. Whereas the first cut had been fully priced by March, it's now seen only by May.
  • Conversely, Bunds were supported by weak IFO survey data, and a less onerous than expected 2025 German funding plan.
  • The UK curve bear flattened on the day as yields rose the most since Oct 31, with Germany's curve twist flattening (with a modest uptick in short-end yields). 10Y Gilt/Bund spread closed at the widest (229bp) since 1990.
  • Periphery / semi-core EGB spreads were little changed.
  • The UK data spree continues Wednesday with CPI (preview here), and the BoE decision looms Thursday. We also get final Eurozone Nov inflation, and an MNI Webcast featuring ECB chief economist Lane.

Closing Yields / 10-Yr EGB Spreads To Germany

Keep reading...Show less