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GILTS: /STIR: BMO Stick To BoE Rate Cut Call, Like 5s10s Steepeners

GILTS

BMO suggest that “this week’s UK data have, overall, moved in the right direction for the BoE… but the data has not improved enough for the MPC to accelerate the path of rate cuts”

  • As such, they still expect the MPC to deliver 25bp cuts in both Nov and Feb.
  • Markets wise, they think “the UK front end rally is a fade, but recognise how volatile the strip is, and how closely it has been following U.S.”
  • As a result, they point to 5s10s gilt steepeners as their preferred position to reflect their BoE view.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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