Markets this morning have been a.......>

BOND SUMMARY: Markets this morning have been a little directionless as the

market looks ahead to the BOE MPC monetary policy decision and ECB TLTRO

allotment announcements. USTs and gilts marginally higher on the day but Bunds

lower on the day. Peripheral spreads are little changed too.

- The MPC is widely expected to announce a GBP100bln extension to its asset

purchase programme at today's meeting. The statement is also expected to state

that purchases will be "completed as soon as operationally possible". If

purchases are spread over a longer period, the market is likely to be

disappointed. But it will take a much larger than GBP100bln announcement for the

market to be substantially surprised in the other direction (given that more QE

is widely considered to be on the table in August). The decision will be

released along with the Monetary Policy Statement and Minutes at midday BST. A

press conference will be embargoed for 14:30BST.

- In terms of the TLTRO, sell-side estimates for gross takeup have a median of

EUR1.2trn, with a EUR900bln-1.5trn range in expectations.

- There will alos be focus on US continuing claims later today.