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TD Securities Recommend Receiving GBP 1y1y

STIR

TD Securities have recommended entering a received GBP 1y1y position.

  • They target a move to 3.90%, with a stop set at 4.52%.
  • They believe that the key driver for UK front-end will be next week's CPI report.
  • They suggest that “the report should further confirm the downward trajectory in inflation, possibly even below the BoE's estimated forecast.”
  • They also expect next week’s BoE speakers to “highlight that the policy path for the BoE will be driven by domestic drivers rather than Fed policy.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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