Swaps - GBP
Macro factors saw 10y yields rise, while in linkerland traders were distracted by syndication meetings. Swap liquidity is under scrutiny post-Brexit.
Liquidity, or the lack of it in the long end, was a talking point among sterling traders with one describing 30y liquidity in swaps as appalling.
Today's eagerly-awaited 25y gilt syndication caught the eye as traders pondered its spread to the 2045 reference gilt. 5y gilts were popular.
Blue Monday came with turquoise skies and a whiff of hope in the air. Traders are upbeat on 2046 supply. BofA looks at 2021-22 supply. Brevan update.
The GBP market was a bubble unto itself today, with market moves largely stemming from very specific flows, such as aggressive buying of 30y ASWs.
News the ravens are fleeing the Tower of London was not blamed for gilts' rally today. Doves were on the mind of HSBC. ASW selling shone in 10y, 30y.
LDI buyers led robust demand for today's IL65 but traders warn the success of the auction it is not indicative of near term inflation picture.
A soggy day for fixed income everywhere was particularly moist here on Gove Island, as 10y gilt yields sold off 4.5bps and the APF had to dig deep.
Traders and strategists again disagreed about the 10s30s curve while Tenreyro came from a good place, but her dovishness lacked oomph said GBP bulls.
The UK Working Group on RFRs last month discussed issues with transitioning non-linear derivatives to SONIA. Meanwhile term SONIA fixes launched today