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What to watch (2/2): UK

MARKET INSIGHT
  • There will also be continued focus on the size of the Bank of England's bond purchase operations. Yesterday saw the largest day of long conventional bond purchases since the Bank launched its programme on 28 September with GBP2.375bln purchased out of a possible GBP5bln.
  • Perhaps more significant was that no offers were rejected, and the Bank did actually make some purchases above the prevailing mid-price at the time of the auction close. At 8:00BST there will be focus on the size of the operations today - will there be a step up in the sizes? If there are, and given the Bank's lack of rejections yesterday this could provide some optimism in the gilt market that there will be less of a risk when the Bank steps away at the end of this week.
  • MPC member Catherine Mann's scheduled appearance at the Peterson Institute today has been cancelled.

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