OIL: Singapore Total Oil inventories Fall Led by Fuel Oil

SX7E (20th June) 200/185ps 1x2, bought for 2 in 6k.

Asked about PAYE data:

• "Yes, we follow that data very closely. Data on labour market quantities is difficult. I think the bank has recognised, and I would agree with that there's been an easing in the labour market. I think the Bank is suggesting the labour market is easing, and I think that's on the easy side of equilibrium... And I think that does weigh on wage dynamics, and that weighs on the inflation process. This is part of the transmission mechanism monetary policy. So I'm not pushing back against that that's the sense in which, think there's a question of pace, rather than direction here. But I'd also say that for all that there's none. Of course there are lags in transmission and so forth. It's also true that some of the key indicators of pay dynamics remain quite strong."
• Goes on to say that AWE data is still "running at a pretty high rate"
• "Even if you look forward to indicators that many of my colleagues and I too put quite a high weight on, like the agency pay settlement survey, which looks a me more reassuring three and a half to 4% at the end of this year. I mean, three and a half to 4% would still represent quite a strong page pace of wage growth relative history, in particular, when you take into account the productivity growth in the UK, has been very weak for some time. So I think the challenge is, and of course, the real income persistent story that I was just trying to describe, and a little bit in the spirit of what I said to Theo, that is a possible explanation of why what seems like weakness in the labour market can be associated with still nominal stronger than expected nominal dynamics."

Gilt Block trade is spread related:

• G M5 8k at 91.80.
• G U5 4k at 91.80 and 4k at 91.81.

First notice for Gilt is the 29th May, these should start to pick up into the end of this week.