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Gilts the underperformers as TSC meeting enters final phase (2/2)

BOE

Market reaction

  • The short sterling strip shifted lower at the start of the meeting, and remains lower on the day, but is off the lows seen towards the start of the meeting.
  • 2-year and 5-year gilt yields both up 2.4bp on the day and 10-year yields up 3.3bp (these moves are larger than for USTs or Bunds).
  • EURGBP on its low of the day, but largely due to broader EUR weakness. GBPUSD is at its highs of the day, however.

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