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.
We have already highlighted yesterday’s move to fresh recent extremes when it comes to the level of inversion witnessed in the 2-/10-Year spread on the Gilt curve, as the pricing of higher for longer BoE interest rates reverberated in the wake of the latest UK labour market report. Still, the move leaves the degree of inversion witnessed on the spread a little above that seen in on the German curve, while the U.S. equivalent is almost ~40bp more inverted than what is seen on the UK curve. The degree of active QT from the BoE may have limited the degree of inversion in recent times and it will be interesting to see how this dynamic evolves in the coming months.
Fig. 1: UK, U.S. & German 2-/10-Year Government Bond Yield Spreads
Source: MNI - Market News/Bloomberg
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.