MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI: BOJ Tankan: Key Sentiment Rises, Solid Capex Plans

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Likely to open higher after income tax cut reversal

GILTS
  • This week’s SONIA and gilt market opens are likely to see moves to the upside after the BBC reported that the Chancellor will announce a reversal of the plan to cut the rate of income tax from 45% to 40% for those earning over GBP150,000. Overall this makes no real difference to the fiscal numbers but shows that the PM and Chancellor are at least willing to dial back some of their plan in the light of the clear opposition (from both the public and within the party).
  • We are still looking for a time for the Chancellor to make a speech today (he has one scheduled at 16:00BST but we expect an appearance earlier even if we only have a statement confirmed the income tax plan reversal). This will also increase the market’s hope that the “Medium-Term Fiscal Plan” and publication of the accompanying OBR forecasts due on 23 November will be pulled forward. This week will also see the Conservative Party Conference held through Wednesday.
  • S&P affirmed the UK at AA but changed the outlook to negative, which may limit the rally in gilts a little. In terms of other UK-focused events this week we will have the release of the monthly Decision Maker Panel data for September on Thursday. We will also hear from MPC members Mann (on a panel on Monday evening on monpol) and Ramsden (at the Securities Industry Conference on Friday).
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.