Gilt Week Ahead

The week ahead will see focus on the continued Brexit negotiations and Internal Market bill debate as well as two speeches from BOE Governor Andrew Bailey. In addition flash PMI data for September and public finance data for August will both be released while the rise in Covid-19 cases and government response will also be key.

• Brexit negotiations will continue informally this week ahead of the ninth round of negotiations next week. The Internal Market bill that seeks to override parts of the Withdrawal Agreement will continue to be debated in its "Committee" stage. See the full document for a more detailed schedule.
• In terms of the government response to the rise in Covid-19 cases, the Chief Medical Officer Prof Chris Witty and Chief Scientific Advisor Sir Patrick Vallance will give a televised address to the nation at 11:00BST. The BBC reports that Prof Witty is expected to say "We are looking at the data to see how to manage the spread of the virus ahead of a very challenging winter period."
• On the data front, the flash PMIs on Wednesday will be closely watched for any deterioration in sentiment from the increase in number of Covid-19 cases across the UK.
• Governor Bailey's comments will be closely monitored this week after the last week's MPC Minutes revealed that members were briefed on how negative rates could be "implemented effectively" and that the BoE and PRA "will begin structured engagement on the operational considerations in 2020 Q4" (see MNI BOE Review). There are likely to be follow up questions to Bailey regarding this at his two public appearances.
• We preview this week's syndication and auctions.