Swaps - GBP
Gilts joined in with global bear-steepening today as the US confirmed a big rise in long end supply. Elsewhere, the pace of BOE tapering is discussed.
A day of strong moves in gilts either side of supply and demand bursts saw sterling fixed income follow the risk-off trend. Ahead of the MPC.
The 10y gilt yield achieve only its second sub-10bps close today as gilts bull-flattened ahead of supply. JPM looks at the taper prospects.
Another month in Covid Year One ended with a scheduled newsflash today as the good people of the DMO unleashed their latest mega-issuance plans.
As gilts yields hit new lows, traders kept half an eye on tomorrow’s supply news. And Lloyds data shows its hedge growing shorter and larger.
Large structural flows in front-end breakevens attributed to a particular name are the main focus as active accounts start to fade the move.
News from the DMO left nominal gilt traders unmoved, while talk of a linker syndi has served to remind some that things can get better.
The Sisyphean tasks of the DMO continue. Traders are resigned to a 15y syndication and have only themselves to blame. FMSB warns about home working.
After last week was headlined by structural flow in 40y gilts. rates have traded in tight ranges this week and the flow is in long dated SONIA-BOR.
Traders say yields are being pinned to the floor by macro factors. One of them, warns an MPC member, is still with us and its called Covid-19.