AUSTRIA AUCTION PREVIEW: ATBs On Offer Next Week

• That's a soft 30-year gilt auction result. The lowest accepted price of 98.301 was way below the 98.461 price seen just before the bidding window closed and resulted in the 1.4bp tail.
• Immediate reaction in the 5.375% Jan-56 gilt with the price falling to 98.208 at writing (yield 1.5bp higher than pre-auction window closing).
• 10s30s curve steepened 0.7bp.
• Gilt futures fall from 91.02 to below 90.90 at the time of writing. To put this into context - this is the same magnitude move seen (in reverse) in the few minutes following the soft PMI data this morning.
• GBP FX dropping a couple of pips bit nothing notable yet.

The Riksbank press conference (in Swedish) has started. Link

• Thedeen notes that when excluding energy and the food VAT policy, underlying CPIF inflation is steady at/just below 2%.
• He re-iterates the factors that contributed to the high summer inflation readings (basket effects, seasonal prices), noting that these appear to have been temporary.