UK: Polls Open In Clacton By-Election But Little Market Relevance This Time

Governor of the Bank of England Andrew Bailey delivers evidence to the House of Commons Treasury Select Committee from 09:45BST (04:45ET, 10:45CET). Bailey will be joined by Executive Director for Financial Stability Strategy and Risk at the BoE, Nathanaël Benjamin, and external members of the Financial Policy Committee, Stephen Blyth and Randall Kroszner. Livestream here. 

• Parliament's synopsis of the session is that "Questions will relate to the most recent Financial Stability Report, published by the FPC on 7 July 2026. In their report, the FPC warns that there is an increased risk to the UK’s financial stability due to rapid progress in frontier AI models. MPs are likely to probe witnesses further for what can be done to strengthen cybersecurity in financial institutions. The Committee is also likely to ask Bank officials for their assessment of other potential threats to financial stability, such as geopolitical conflict and non-bank financial institutions such as hedge funds. Questions may also cover recent discussions within the FPC related to potential changes to the leverage ratio framework."

TYQ6 107.50 puts 5K given at 0-06.

• Spread set at 1.125% Nov-37 I/L gilt +9.25bp (GB00B1L6W962)  (Guidance was +9.25/+9.50bps)
• Size: GBP Benchmark (The average size of a linker syndication in the DMO plan for this fiscal year is GBP3.5bln. We see that as the smallest possible size with a GBP4-5bln transaction more likely with risks of GBP5.5bln)
• Books in excess of GBP51bln (inc JLN interest of GBP4.0bln)
• Expected Settlement Date: 15-July-2026 (T+1)
• ISIN:  GB00BMY62Z61
• Joint Leads: BARC (B&D/DM) / BNPP / NatWest / NOMURA
• Timing: Books to close at 9:30BST (as MNI expected)