Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
Real-time insight on key fixed income and fx markets.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
GILT AUCTION PREVIEW: The UK Debt Management Office will sell Stg2.5bln of
1.625% Oct-28 gilt Wednesday.
- BACKGROUND: This is a re-open of the 1.625% Oct-28, with Stg11.05bln
- RV/HISTORY: Gilts have been under pressure in recent weeks on the back of a
perceived increase in the 'no deal Brexit' risk. The benchmark 10-year gilt
trades at 1.334% up from a July low of 1.185%. The curve has steepened as a
result of the long-end underperforming with the 2s10s spread widening to 59.1bps
from a July low of 45.5bps, while the 2s30s has pushed up to 102.4bps from
92.8bps. Credit risk has increased with the benchmark 5-year CDS spread
increasing to 24.0bps from a YTD low of 14.7bps in February. Market based
measures of inflation compensation have been broadly stable with the 5-year
breakeven trading within a 2.95-3.00 band through July. The 1.625% Oct-28 gilt
trades at 1.477%, 12.4bps inside the comparable Stg swap.
- TIMING: Results are due shortly after the auction closes at 0930GMT.