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USDCAD TECHS

Solid Bounce

AUDUSD TECHS

Reverses In Style

EURJPY TECHS

Accelerates Off Bull Trigger

USDJPY TECHS

Still Pointing Higher

EURGBP TECHS

Bouncing Well

GBPUSD TECHS

Bulls Press Pause

GILT SUMMARY
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%.