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EQUITIES

Muted Open, S&P Futures Parameters Unchanged

OPTIONS

Larger FX Option Pipeline

COMMODITIES

Oil Moderating, Futures Curve Still Strong

GLOBAL POLITICAL RISK

EU, France Ease Up On Vaccine IP After US States Support

GILTS
GILTS: WEEK AHEAD: It will be a busy week in gilt markets with the BOE due to
come to the market to buy gilts every day except Friday. The final GBP5.1bln of
reinvestment from the 4.75% Mar-20 gilt will be followed up by three days of
GBP3.0bln purchases Tues-Thurs.
- There is no issuance due in gilt space next week but T-bills are set to be
offered in the same volume as this week. Note that the 3-month auction was
uncovered - only the third uncovered UK T-bill auction since DMO records began
in 2001.
- The key data release for the gilt market will be the Markit flash PMI print on
Tuesday. This will be the first UK data release to reflect the period in which
Covid-19 has entered Europe.
- The DMO announced on the morning of Friday 20 March that the gilt remit would
be updated to include the Covid-19 stimulus measures following the 2019/20 CGNCR
outturn, with the updated remit published on 23 April. However, after the
additional fiscal stimulus and support for businesses announced by Chancellor
Sunak, the DMO may need to raise money even earlier and not be able to wait.