Week Ahead (2/2)

• It is a quieter week on the data and speaker front. We are due to receive the second estimate of GDP on Wednesday and the final manufacturing PMI print on Thursday. It will be interesting to see whether the PMI is revised lower given the continued rise in Covid-19 cases as this may affect any late survey submissions more than those who submitted their answers early. We are also due to hear from BOE's Haldane three times this week.
• Note that over the weekend, external MPC member Silvana Tenreyro described evidence from other countries on negative rates as "encouraging" noting that "There has been almost full pass-through of negative rates into lending rates in most countries….Banks adapted well – their profitability increased with negative rates, largely because impairments and loss provisions decreased with the boost to activity and the increase in asset prices."

For the full Gilt Ahead including auction previews, QE tracker and BOE purchases analysis, cash flow matrix and issuance calendar see: https://emedia.marketnews.com/GiltWeekAhead28092020.pdf