Week Ahead (2/2)

Against this backdrop there will be two MPC speeches worth watching today. First, on Monday Tenreyo will give a speech entitled "Let's talk about negative rates" in which she will assess the international evidence. Tenreyro has previously said that evidence from the Eurozone in particular has been positive, so it will be interesting to see if she goes any further than previously or any comments she makes about suitability in the UK. Note that the review of negative rates will be published alongside the February Monetary Policy Report on 4 February. On Tuesday, Broadbent will give a speech "Covid and the composition of spending". Furthermore, there will also be key November activity data released on Friday. Although this data is now somewhat stale, the current Covid restrictions are largely in line with those seen during the November lockdown, so this will may give the best indication of the hit to GDP we are likely to see in weeks ahead.

For the full Gilt Week Ahead including supply previews for the week ahead see here.