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Pricing in a higher risk premium following uncovered APF op

GILTS
  • 5-year gilt yields have risen over 3bp on the back of the uncovered APF sales op, 2-year yields over 2bp higher and 10-year yields above 1.5bp higher.
  • The market is going to be a bit jumpy now and will probably have to add some risk premium to short-dated gilts for the near-term.

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