Bonds - GBP
Swappers take stock after the GBP fixed income market took its heaviest non-Covid hit in a long time as fears of a Nov hike materialised.
After the ecstatic deluge of Green gilt sales came the more humdrum affair this morning of a £350m tap of the IL56. 'Tepid' was one adjective applied.
The LSE Group has said its interest rate futures market CurveGlobal will close in January next year.
Today’s Green gilt debut broke records left, right and centre as it became the biggest Green bond sale ever.
Green day is almost upon us, and sources said today that the lights are shining Green for go ahead of what is promised will be a record-breaking sale.
Another mellow Autumn day was full of fruitfulness once again for GBP, with a SONIA-linked RBC deal and a larger-than-expected deal from L-Bank.
As recently as August, long-suffering basis swappers were pooh-poohing the idea of big GBP issuance onslaught this Autumn. Now they are less sure.
A slightly busy Thursday followed a very busy previous two days. The 7y EUR/USD basis stood out, as did post-Brexit cable.
A first proper wave of new season supply, led by EUR and a highly-active GBP, left some surprised by the inability of supply to weigh on basis.
One swapper at a UK bank in Canary Wharf said “it’s like Kurdistan out there.” As protests roared, gilts embarked on an unconvincing steepener.