MNI BRIEF: US Nov Existing Home Sales Jumps 4.8% To 4.15M

MNI BRIEF: BOE Leaves Rates Unchanged In 6-3 Vote Split

MNI BOE WATCH: Bank Keeps Rate At 4.75%, But Three Vote To Cut

MNI BRIEF: CNB Pauses Easing Cycle As Expected

MNI China Daily Summary: Thursday, December 19

MNI BRIEF: China Working On Trade-in Scheme Expansion - MOFCOM

US EIA:NAT GAS STORAGE -125 BCF TO 3,622 BCF DEC 13 WK

MNI: US NAR: NOV EXISTING HOME SALES 4.15M SAAR

MNI: US DEC PHILADELPHIA FED MFG INDEX -16.4

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

Steeper curves - synd weighs on long-end, front-end looks overdone yday

GILTS
  • Gilt futures are close to their closing levels yesterday (the close was 124.31) after hitting a high of 124.57 shortly after the open (which surpassed yesterday's high).
  • Bunds were also dragged higher on the gilt open, but have now returned to their prevailing levels.
  • In cash gilts, 2-year yields down 1.9bp and 5-year down 1.7bp while 10-year is down 0.8bp and 30-year down just 0.1bp.
  • This leaves a steeper 2s10s curve (1.1bp move on the day to 43.2bp) and also a steeper 10s30s (0.6bp at 24.1bp).
  • Note that the 30-year green gilt syndication is likely helping some steepening of the 10s30s as 30s trade a little softer ahead of the big supply (see our preview at 7:37BST).
  • The short-end of the gilt curve is largely being driven by changing rate hike expectations as outlined in the STIR bullet at 8:06BST. Yesterday's moves look overdone to us with rate hikes fully priced into the next three MPC meetings.
  • In terms of MPC speakers today we have Mann on creative destruction (11:00BST) and Bailey on the financial impacts of climate change (13:05BST).
  • Some other media outlets have Huw Pill speaking on a panel on CB strategy reviews with ECB's Lane, Dartmouth's Levin and Columbia University's Mosser at 14:00BST (16:00 local) at the Bank of Finland/SUERF Conference. However, the website does not show him as attending.
HomepageBank Of England (BOE) Market NewsBulletUKMarketsFixed Income Bullets
HomepageBank Of England (BOE) Market NewsBulletUKMarketsFixed 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.