Bonds - GBP
Gilts were constrained today after warnings from Apple and a strong showing by UK employment data failed to drag the market out of its ranges.
Dire warnings of the risks of corona-contagion on the London underground and the sudden resignation of the Chancellor were the drivers today.
The gilt future tumbled 50 ticks into the close underperforming Bunds and Treasuries in a bearish tone egged on by the prevailing risk-on mood.
Price action was somewhat muted today, but cable traders will be happy to see GBP supply. IFC discusses its sterling offering today.
A combination of good PMIs and stretched valuations saw gilts sell-off, while standout trends in swaps include receiving in 5y, and paying in 50y
The first trading day on Brexit Island saw the 30y sector in the spotlight, with good paying and decent flow.
While the rate cut is now in real jeopardy, the market found itself over-stretched after the China virus rally, and succumbed. UKMBA on swaps
A big risk-off move greeted the developments in what is already the second global scare of the 2020s.
Today’s much-hyped Jan PMI data came, and then went, leaving the sterling market profoundly uninterested. Instead, 50y flow caught the eye.
Traders said that sterling market activity today, and for previous sessions, has been very much a tale of two wings.