HUNGARY: Prospect of Language Tweaks Contemplated Among Sell-Side (2/2)

• Size: GBP Benchmark (MNI expects GBP GBP4.5-5.5bln)
• Guidance: UKTi 1.125% 22-Nov-2037 (GB00B1L6W962) +10.50/+10.75bps
• Maturity: 22 September 2038
• ISIN: GB00BMY62Z61
• Benchmark: UKTi 1.125% 22-Nov-2037 (GB00B1L6W962)
• Coupon: 1.75% Semi Annual, ACT/ACT
• Expected Settlement Date: 13-November-2025 (T+1)
• Current O/S : £5.5bln
• JLMs: GSIB (B&D/DM) / JPM / NOMURA / SANTANDER
• Timing: Books open, today’s business

Source: Market source and MNI colour

GBP weakness does coincide with Streeting's comments being more widely circulated in UK media e.g. Here: https://www.telegraph.co.uk/politics/2025/11/12/politics-latest-news-keir-starmer-leadership-challenge-pmqs/ but nothing particularly new after his appearance on the BBC this morning.

• No real standout volumes on the move: GBP futures activity has picked up, but not notably - suggesting price action here may not be tied to sizeable flow. The more gradual nature of the move in spot also supports this.
• Move in GBP may instead be fix related into 9am - or tied to the underperformance in Gilt markets relative to broader European bonds.
• GBPUSD has stabilised just above the new daily low of 1.3115.

Gilts lead the sell off in core global FI markets this morning.

• A reminder that this comes after Tuesday’s outperformance in the wake of weak UK labour market data and key resistance holding in futures.
• Rumours surrounding a potential leadership challenge within the ruling Labour Party, presence of syndicated gilt supply (albeit I/L) and the bid in equities (gilts having a higher beta than Bunds) seem to be the driving factors.