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Huge tail sees 10s30s steepen

GILTS
  • There is a steepening of the 10s30s curve after those poor auction results.
  • The last time we saw a gilt auction with a wider tail than today's 4.0bp was 15 November 2018 - when we saw a 5.1bp tail on a 20-year gilt auction.
  • The 0.50% Oct-61 gilt is now through its low of the day, trading at 37.215 at writing and below the low price of the auction (37.441). (see chart below).

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