Bonds - GBP
Gilt supply dominated today, with traders citing good demand for '28 and '51 gilts, ahead of a supply drought. Insurers eye a world after Solvency II.
London temperatures are hitting 90 degrees Fahrenheit, enough to make the average Brit yearn for Autumn. SONIA though, is heating up even faster.
On a day when the BOE heralded the success so far of the SONIA rollout, his point was reinforced by SONIA supply, which also carried a bearish whiff.
Gilt outperformance appears to reflect the shock news that the UK is not America. Or is it? Elsewhere, traders eye the rally and the 2071 supply.
Gilts ended with a solid underperformance as 10y yields rose 2.5ps after a session lacking rhyme or reason. And strategists look for a UK bounce.
Traders report that the 2071 is doing badly and contend that 5y spreads remain rich.
The next RPI print may be over a week away - and Brent a touch lower today - but the front of the inflation curve continues to gain.
Recent pension scheme de-risking by BA and TUI were suspected of being behind sharp long ASW flows this morning.
Cracks are appearing in the Corona money wall. Central bankers in Australia and the US repo market both point to a possible peak in basis's surge.
10y gilts underperformed USTs and Bunds after the APF buyback worked its magic. Traders noted 25y receiving flows and eyed the 2071 tap.