Still Offered

Gilts have sold off today and the curve has bear steepened along with the wider correction in European sovereign bonds.

• Cash yields are 3-5bp higher on the day with the curve 2bp steeper. Last yields: 2-year 0.1115%, 5-year 0.4002%, 10-year 0.8319%, 30-year 1.3647%.
• The Jun-21 gilt future trades at 127.9, 13 ticks off the day's low.
• The fallout over access to Covid vaccines continues with European Commission President Ursula Von der Leyen warning of the possibility of emergency vaccine controls following signs that the US and UK are unlikely to export vaccines to the region.
• The DMO earlier sold GBP2.5bn of the 0.625% Jul-35 Gilt. The PAOF was not taken up.
• The BoE sold GBP1.48bn of medium-dated gilts with offer-to-cover of 3.02x.
• Once this evening's FOMC meeting is in the rearview mirror, UK focus shifts to the Bank of England MPC meeting on Wednesday. No significant change in monetary policy expected, but changes to the pace of asset purchases will be closely watched.