Swaps - GBP
GBP swappers fell back on old memories of painful times to negotiate a potentially tricky Monday. They noted 30s/40s ASW action and eyed DMO supply.
Despite the PM being locked down with a nurse, GBP fixed income had no option but to carry on. Traders reported 5y action and index uncertainty.
Gilts played the role of the token sane market today as 10y yields rallied a mere 5bps versus 20bps in OATs. Long linkers were well bid.
Stakeholders this week acknowledged that key milestones are likely to be missed on the path from LIBOR to SONIA as the coronavirus wreaks havoc.
The RPI market largely ignored the data in favour of watching US equities' reaction to the stimulus package, dealers said today.
It probably won’t happen but gilt traders today were allowed to dream that perhaps their market is ready to afford them a little bit of sanctuary.
Traders say that QE was a factor in another day of interesting price action.
A day marked by a sharp bull-flattening was nothing but a continuation of the dramatic reaction to the BOE's second decisive intervention.
Another wacky session for GBP fixed income saw the ECB fire its latest big bazooka before the BOE shot a £200bn banger of its own.
Traders report 'carnage' as London prepares to go into lockdown, Bailey fails to reassure.