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It has been a busy day for UK govvie...>

GILT SUMMARY: It has been a busy day for UK govvie markets. After moving higher
on the open there was little reaction in longer-dated gilts to an uncovered
3-month T-bill auction - only the third time any UK T-bill auction has been
uncovered in the UK since records began in May 2001 (the other two times in
2008). A slightly weak (but not terrible) BOE APF short purchase operation
followed and gilts took a leg higher, hitting their highs of the day shortly
before 13:00GMT. Much of this move was reversed following the medium-dated APF
reverse auction and the long-dated auction saw gilts briefly move higher before
recovering very soon after. At the time of writing, Chancellor Sunak announced
that the government will cover up to 80% of wages up to GBP2,500/month to cover
people's wages who are not working, VAT deferrals and a number of other
measures. There was little reaction in gilts at writing.
- In other announcements, the BOE announced its QE purchase schedule for next
week. It will buy GBP5.1bln of gilts on Monday (finishing the reinvestment of
4.75%). Then it will buy GBP3.0bln on each of Tues, Wed and Thurs next week.
- Gilt futures are up 2.96 at 133.66 with 10y yields down -16.2bp at 0.558%.

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