MNI Gilt Week Ahead - Aug 31 2021: FQ3 Calendar Due

• There will be two domestic highlights of the week for the gilt market: today's release of the FQ3 gilt operations calendar (which we discussed in our UK Deep Dive publication - Research subscribers see a link in the PDF) and the final PMI data due. Once again there are no scheduled MPC speakers this week although we note that next week we already have both new MPC member Mann and Saunders both scheduled to speak.
• External events will therefore likely be the biggest driver for the gilt market this week with US payrolls (and to a lesser extent the ISM survey) likely to drive sentiment across global markets. With Western troops now largely withdrawn from Afghanistan, the political fallout will continue to be watched, but the bar to events in Afghanistan itself moving markets is probably higher than it was last week.
• We note that the DMO confirmed last week that the inaugural green gilt will launch in the W/C 20 September (we expect Tuesday 21 September). It will have a maturity of 31 July 2033 in line with the previous 10-12-year guidance.

GiltWeekAhead31082021.pdf