POLAND: Flash Data Implies Drop In Core Inflation, Boosts Chance Of Imminent Cut

Of note:

EURUSD 2.87bn at 1.1600/1.1650.

AUDUSD 1.83bn at 0.6530 (a little far).

EURUSD ~1bn at 1.1650 (thu).

USDCAD 2.42bn at 1.4015/1.4025 (thu).

USDJPY 1.15bn at 152.50 (fri).

EURUSD ~1bn at 1.1640 (tue).

• EURUSD: 1.1600 (637mln), 1.1615 (346mln), 1.1640 (651mln), 1.1650 (1.24bn), 1.1670 (679mln), 1.1675 (282mln).
• USDJPY: 152.50 (299mln).
• USDCAD: 1.3970 (470mln).
• AUDUSD: 0.6530 (1.83bn).
• USDZAR: 17.1500 (210mln).

• Impending sovereign supply is likely underpinning UK and German yields this morning, keeping the 10-year Gilt/Bund spread close to the 2025 low of ~177.5bps.
• The DMO will sell GBP3.75bln of the new 4.125% Mar-33 Gilt at 1000GMT. Meanwhile, Germany will sell E4.5bln of the 10-year 2.60% Aug-35 Bund at 1030GMT.
• The April low continues to contain downside in 10-year Gilts, which are currently little changed at 4.40%.
• Spanish Q3 flash GDP confirmed expectations at 0.6% Q/Q (vs 0.8% prior), but domestic demand signals were solid. UK September consumer credit was in line with expectations.
• The EFSF has sent an RFP for an upcoming transaction, which will likely be held early next week.
• In the Eurozone, focus remains on the ECB decision (Thurs), Eurozone Q3 flash GDP (Thurs) and October flash inflation (Fri).  In the UK, spillover from US Treasuries amid today’s FOMC decision will be eyed alongside ongoing budget headline flow. 

• MNI: UK BOE SEP MORTGAGE APPROVALS 65,944
• UK BOE SEP SECURED LENDING GBP5.49 BLN
• UK BOE SEP CONSUMER CREDIT GBP1.49 BLN