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TD recommend to receive GBP OIS 2y1y

UK

TD Securities notes that it looks to receive GBP OIS 2y1y at 70bps with a target of 60bps and stop loss at 80bps. They note that:

  • "Next week's BoE meeting is unlikely to offer any new deliverables."
  • "Market pricing of simultaneous reduction in balance sheet and rate hikes over the year is too aggressive."
  • "The BoE remains too optimistic on the recovery."

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