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Is the reduction in the gilt remit reducing offers in the APF?

GILTS
  • So all 3 BOE APF operations this week have seen less offers than in recent weeks.
  • So the question is: is this reflecting a reduced liquidity in the gilt market given with market participants less willing to sell following a reduction in the gilt remit. Or is this a pre-BOE reduction given the uncertainty of tomorrow's meeting?
  • We think the former is more likely with gilt liquidity lowered by the reduction in the remit.

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