Swaps - GBP
A run-of-the-mill risk-on move fizzled out early in the GBP markets, allowing the curve to bull-flatten late on. JPM looks to lighten GBP positions.
Headlines from a rare anti-UK French PM has left negotiators needing to throw a sprat to catch a Macron. Gilts spiked on the Brexit news. 5y IRS flow.
Depressing directionality pertaining to Brexit and corona set a grim backdrop to a gilt rally. Even for GEMMs it wasn't fun, with 5y longs squeezed.
RPI swaps were confined to spread trading as dealers await news on Brexit over the next couple of days.
A straightforwardly risk-off session played into the hands of gilt-buyers at today's double auction. Brexit underpinned a general sense of malaise.
News the BOE has started posting letters regarding negative rates drew negative interest. Some swappers see a slight delay though in such a move.
A listless week for gilts ended with interest in 15y and 20y ASWs, in the ISDA Fallback news today and in mortgage flows. In bonds, Green is golden.
Gilts underperformed rivals again today but ended up in mildly positive territory after a thin bull-flattening. Linkers had another mystery rally.
Linker traders reported quite a strong auction of the IL41 this morning against the backdrop of a drop in oil prices and volatility in RPI.
Things whirred around in GBP bonds and today, but with little effect. The FTSE and gilts were unchanged at close. Traders eye steepeners.