BELGIUM T-BILL AUCTION PREVIEW: On offer next week

MNI interviews former Dallas Fed senior aide on monetary policy outlook -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.

• Secured Overnight Financing Rate (SOFR): 4.34% (+0.01), volume: $2.863T
• Broad General Collateral Rate (BGCR): 4.33% (+0.02), volume: $1.167T
• Tri-Party General Collateral Rate (TCR): 4.33% (+0.02), volume: $1.137T
• (rate, volume levels reflect prior session)

• The modest USD weakness seen into the NY crossover is helping GBP/USD higher, however strength is capped into Monday's post-NFP high of 1.3331 (EUR/USD saw a run higher on the break of the equivalent level). Today's moves are on relatively light volumes: CME GBP futures have seen a mere two-thirds average volume for this time day - typifying the quiet week we've had so far.
• Resilient GBP/USD comes despite the NIESR estimates out earlier today that suggests the government are facing a more dire fiscal picture in Autumn than previously expected - suggesting markets are well priced for sharp spending cuts and/or tax rises at the next Budget.
• Instead, it's the BoE decision Thursday that could be of more consequence, and in particular the vote split: 2-5-2 (50bps cut, 25bps cut, unch) is the modal consensus - and we flag that the baseline projections may become less useful as a communication tool going forward - and as such, less market relevant. Our full BoE preview is here: https://media.marketnews.com/MNI_Bo_E_Preview_Aug25_42afebd294.pdf
• EUR/GBP remains in a nascent uptrend, evident in the recovery from last Thursday's low. Key resistance and the bull trigger remains at 0.8769, the Jul 27 high.