BOE: Ramsden: Today's APF analysis sets scene for September decision
Aug-07 12:14
- Q: Ramsden asked on the pace of QT and whether the gilt market could absorb a GBP100bln APF reduction in 25/26:
- A: Ramsden talks through the principles of QT and the box with the impact on QT that's in the MPR (see our summary of that at 12:28BST).
"We are very cognizant of developments in gilt markets. You know, particularly at the long end, we've seen that spread between 30 year and 10 year widen in the in the UK market. It's a it's a global feature. As I emphasised, and as we set out in the box. We are looking... as we always do. We're monitoring market functioning. But... to just finish the processes that we put out our analysis now and then we make a decision on what will be... the total reduction in the stock of asset purchases for the next Qt year, which will run from October to next September. That decision is will be made in September. So we've set the scene with the box today... quite a lot of detail, quite a lot of new analysis in there, and then the decision will be made in September, as we always do,"
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BONDS: Sell Off Stalls As Bears Fail To Meaningfully Break May Top In Bund Yld
Jul-08 12:08
Core global FI markets have edged away from session lows over the past couple of hours after bears failed to push German 10-Year yields sustainably above the mid-May highs (it was pierced, with the benchmark topping out at 2.707% vs. the May 14 high of 2.701%).
- Core global bonds are still comfortably lower on the day, curves lean steeper.
- Little in the way of macro news flow in the time since, with global benchmark equity index futures off London morning highs and crude consolidating below Monday’s session bests.
STIR: Repo Reference Rates
Jul-08 12:03
- Secured Overnight Financing Rate (SOFR): 4.33% (-0.02), volume: $2.814T
- Broad General Collateral Rate (BGCR): 4.31% (-0.01), volume: $1.136T
- Tri-Party General Collateral Rate (TCR): 4.31% (-0.01), volume: $1.106T
- (rate, volume levels reflect prior session)
GILT PAOF RESULTS: The PAOF for the 1.875% Sep-49 Linker wasn't taken up.
Jul-08 12:02
- GBP225.0mln have been on offer.
- This leaves GBP5.900bln of the gilt in issue.
