Free Trial
ESM ISSUANCE

ESM 6-month Bills - Auction Result

US 10YR FUTURE TECHS

(U2)‌‌ Consolidation Mode

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Gilts are trading modestly higher in...>

GILT SUMMARY
GILT SUMMARY: Gilts are trading modestly higher in early Wednesday morning
trade, paring some of the very heavy losses seen Tuesday as markets look ahead
to UK July labour market data, that includes latest average weekly earnings.
- The curve is slight bull steepening as the short-end is currently
outperforming with 2s/10s 0.3bp wider, however there has been some decent
selling seen in the front end of the short sterling strip as markets price in
higher chance of the Bank of England raising rates by the end of the year.
- Attention is likely to be on UK average weekly earnings data released at
0830GMT, and if real incomes have squeezed even lower. However, MNI median
forecast is for earnings to increase to 2.4% from 2.1%, while ex-bonus is seen
only rising to 2.2% from 2.1%.
- Elsewhere the DMO re-opens 10-year 1.25% 2027 Gilt for Stg2.5bln today, while
the Bank of England continues its APF repurchase operation in the 7-/10-year
category for Stg1.125bln, where there are only 2 Gilts available to buy.
- 2-yr and 5-yr swap spreads are seen 2.5bp wider while the rest of the curve is
little changed. While UK breakevens are currently steady.

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.