DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EGBs-GILTS CASH CLOSE: Gilts Rally Amid Big Issuance Reduction

BONDS

Long-end Gilt yields fell by the most since March 2020 Wednesday, outperforming Bunds (which still saw one of the biggest rallies of 2021).

  • Alongside today's UK budget release, DMO announced a reduction in Gilt issuance of GBP57.8bln in 2021-22 vs the amount projected in April, which was beyond even the biggest sell-side expectations.
  • That accelerated a Gilt rally that started in the morning, with yields closing near the lows.
  • Periphery EGBs couldn't quite keep pace with Bunds, leaving spreads a little wider. GGBs underperformed; Portugal weaker too amid continued political uncertainty and a short- for long-term bond exchange operation.
  • Focus turns to flash October CPI and the ECB decision Thursday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is up 1.3bps at -0.645%, 5-Yr is down 2.8bps at -0.469%, 10-Yr is down 6.3bps at -0.18%, and 30-Yr is down 8.9bps at 0.155%.
  • UK: The 2-Yr yield is down 6.7bps at 0.559%, 5-Yr is down 9.8bps at 0.702%, 10-Yr is down 12.5bps at 0.985%, and 30-Yr is down 18bps at 1.136%.
  • Italian BTP spread up 0.5bps at 111.8bps / Portuguese up 1.9bps at 55.2bps
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.