FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

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

More 10s30s Flattening Today? (1/2)

GILTS
  • The Bank of England announced on Friday that it would change the parameters of its APF sales programme (i.e. QT).
  • In Q4-24, the BOE aimed to sell equally across the three maturity buckets (3-7 years, 7-20 years and 20+ years) in cash terms measured in sales proceeds - which resulting in setting a size of GBP670mln with an equal number of operations in Q4-24.
  • The MNI Markets team had noted that this was sub-optimal - mainly because it meant that there long-dated gilts had a much larger duration and the market was showing some signs of fragility by having to digest so much at the long-end.
  • This also meant that the Bank's balance sheet reduction was more focused on the long-end - as it holds gilts on its balance sheet at their initial purchase price (it doesn't mark to market), and with the gilts being higher duration they reduced the size of the balance sheet faster (by effectively locking in large losses for the BOE - which was then indemnified by the Treasury and hence would have the perverse impact of raising required DMO gilt issuance).
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets

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.