GILTS: Off Lows Alongside Bunds, Questions Remain On BoE Trajectory

The DMO has announced it will be looking to sell GBP4.5bln of the 4.125% Mar-31 Gilt (ISIN: GB00BVP99673) at its auction next Tuesday, November 25.

Large flattener blocked/crossed at 1008:21ET:

• -20,000 FVZ5 109-12.75, sell through 109-13.25 post time bid (DV01 $855k) vs
• +2,500 WNZ5 120-12, buy through 120-11 post time offer (DV01 $465k)

The Director of the nonpartisan Congressional Budget Office, Phillip Swagel, is shortly due to provide testimony to the House Budget Committee. LIVESTREAM

• Politico notes, “The oversight hearing will be the first chance GOP lawmakers have to air their grievances over the agency’s analysis of their party’s megabill [the so-called One Big Beautiful Bill] since the legislation was enacted in July.”
• The Associated Press reported in September that “Trump’s sweeping tariffs plan has posed challenges to the CBO’s standard models for assessing trade. So far, the CBO estimates the tariffs could reduce the national deficit by $4 trillion over the next decade, helping to offset the deficit increases it projects will result from the Republicans’ big bill passed this year. “It’s a huge impact,” Swagel said.”
• Rep. Lloyd Smucker (R-PA), who is hoping to succeed retiring Rep. Jodey Arrington (R-TX) as Budget chair, told Politico: “There’s a lot of models or algorithms that go into how they come up with the numbers. And I think the more that can be open and transparent to everyone, the better we can understand how they're reaching their conclusions.”