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TD Securities Take Profit On Long 10y Gilts vs. Bunds

BONDS

TD Securities note that “the downward surprise in UK CPI provides a much required relief for the markets as well as for the BoE.”

  • “There is less pressure for the BoE to act now and focus will turn towards higher for longer narrative.”
  • “We strategically continue to favour being long Gilts on a cross market basis.”
  • “That said, after today's rally we could see some profit takers coming in.”
  • “This in particular holds that there is still a possibility for the BoE to hike rates tomorrow (even though its likely to be a dovish one).”
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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