BOE: New market facility announced: The Contingent NBFI Repo Facility
Jul-24 14:06
- The BOE has released a provisional Market Notice looking at its new financial stability tool - the Contingent NBFI Repo Facility.
- The Bank says this will allow it to "intervene where severe liquidity-related dysfunction in gilt markets threatens financial stability, by developing a facility that will allow eligible Non-Bank Financial Institutions (NBFIs) to borrow cash against gilts at times of severe gilt market dysfunction."
- Market notice here
- Explanatory notes here
More to follow
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EGBS: Recovery In Brent Crude Futures Contains Rally In EGBs
Jun-24 14:03
- Bund futures reached 132.51 before fading on the Brent recovery, well short of today’s post-IFO high at 132.72, with OATs and BTP futures also unable to push through intraday highs.
- Stronger European equities continue to provide support to peripheral bonds, with 10-year spreads to Bunds around 3/4bps tighter at typing. The 10-year BTP/Bund spread trades below the 150bps handle.
- ECB Executive Board member Schnabel is scheduled to speak at 1630BST, however we expect any monetary policy-related comments to re-iterate the ECB’s data dependent stance and non-commitment to a particular rate path.
US TSY FUTURES: BLOCK: Sep'24 5Y Sale
Jun-24 14:01
- -5,000 FVU4 106-26.25, post time bid at 0953:02ET, DV01 $213,000. Contract trades 106-26 last (-1.25).
SECURITY: Campbell: DPRK Could Get Russian Tech To Boost Nuclear ICBM Programme
Jun-24 14:00
Reuters carrying comments from US Deputy Secretary of State, Kurt Campbell, stating that the US, "believes there are discussions about what North Korea gets in exchange for weapons supplies to Russia; could be associated with nuclear long-range missile development plans."
- Campbell adds: "China probably worried North Korea will be encouraged to take provocative steps that could lead to a crisis in Northeast Asia."
- Comes after senior US, ROK, and Japan officials issued a statement condemning the Treaty on Comprehensive Strategic Partnership, pledging mutual defence, signed by Russian President Vladimir Putin and North Korean leader Kim Jong-un, last week.
- The officials said they, "condemn in the strongest possible terms deepening military cooperation between the DPRK and Russia, including continued arms transfers from the DPRK to Russia."
- The officials warned the treaty, "should be of grave concern to anyone with an interest in maintaining peace and stability on the Korean Peninsula, upholding the global non-proliferation regime, and supporting the people of Ukraine..."
- Experts have noted that there is substantial overlap between technology used for space launches and for intercontinental ballistic missiles, raising the risk that any Russian support for North Korea's growing satellite programme - which successfully launched a first device last November, likely with Russian support - could be used to accelerate its nuclear ICBM capabilities.
