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Is The Rally on Copper Over?

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Gilts hit a bout of turbulence at midday as the BoE's policy announcements hit the wires. Having settled down during the subsequent press conference, yields have since edged lower with the short end of the curve outperforming.

  • The BoE left the main policy instruments unchanged at today's MPC meeting while indicating that the pace of asset purchases would slow that economic output would return to pre-pandemic levels by the end of this year.
  • While the decision by outgoing Chief Economist Andy Haldane to vote for a cut to asset purchases should not be overplayed, it nonetheless reflects a noticeable and broader shift in thinking about the recovery across the MPC.
  • Gilt yields are 1-4bp lower on the day. Last yields: 2-year 0.027%, 5-year 0.3259%, 10-year 0.7862%, 30-year 1.3084%.
  • The Jun 21 gilt future has traded up to 128.24, 29 ticks above yesterday's closing level.