© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI BRIEF: Investors Increasingly Eyeing Fiscal Policy -ECB VP

CANADA OCT FLASH RETAIL SALES +0.8%

MNI China Daily Summary: Friday, Nov 24

EZ/UK Bond Supply Calendar: EU-Bond Auct / BOE APF Op Monday

MNI: US NOV FLASH SERVICES PMI 50.8 (FCST 50.4); OCT 50.6

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

Steeper & Cheaper To Start

GILTS
HomepageBond Market NewsBulletMarketsFixed Income News

Gilt futures gap lower at the open, with the move then extending as Friday’s low gives way and the pullback from levels just ahead of 95.00 extends.

  • Futures last -55, cash benchmarks last 4.5-5.5bp cheaper, with a modest steepening bias on the back of broader impetus in the wake of hawkish weekend comments from the BoJ Governor and after the DMO confirmed that it plans to auction the 1.125% ‘73 gilt on Wednesday 27 September (after last week’s consultation).
  • Local weekend headline flow saw BBG note that “Prime Minister Rishi Sunak is facing a backlash within the Conservative Party as his government weighs letting welfare benefits slip to create room for tax cuts,” although those matters will likely become more of an issue for markets as we move towards the next general election.
  • Note that BoE’s Pill was previously scheduled to give an address today, but that event seems to have been cancelled as of last week.
  • That leaves BoE QT sales of the short maturity bucket as the only point of note on the local docket today.
  • Domestic focus is on the release of the monthly labour market report, scheduled for tomorrow.
193 words

To read the full story

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.

Gilt futures gap lower at the open, with the move then extending as Friday’s low gives way and the pullback from levels just ahead of 95.00 extends.

  • Futures last -55, cash benchmarks last 4.5-5.5bp cheaper, with a modest steepening bias on the back of broader impetus in the wake of hawkish weekend comments from the BoJ Governor and after the DMO confirmed that it plans to auction the 1.125% ‘73 gilt on Wednesday 27 September (after last week’s consultation).
  • Local weekend headline flow saw BBG note that “Prime Minister Rishi Sunak is facing a backlash within the Conservative Party as his government weighs letting welfare benefits slip to create room for tax cuts,” although those matters will likely become more of an issue for markets as we move towards the next general election.
  • Note that BoE’s Pill was previously scheduled to give an address today, but that event seems to have been cancelled as of last week.
  • That leaves BoE QT sales of the short maturity bucket as the only point of note on the local docket today.
  • Domestic focus is on the release of the monthly labour market report, scheduled for tomorrow.