ELECTRICITY: Switzerland, EU Sign New Power Agreement
Dec-20 16:12
The European Union and Switzerland have signed a new agreement on electricity that will allow the participation of Switzerland in the EU internal electricity market, the bloc said on Friday.
- The agreement is part of a wider negotiation between the European Commission and Switzerland on a broad package of agreements to deepen the relationship.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BOE: Ramsden cements his dovish bias - but seems happy with "gradual" for now
Nov-20 16:05
- Ramsden was already thought to be on the dovish end of the spectrum - he dissented in favour of a rate cut before the first cut in August and was one of the 5 members of the MPC to vote for the August cut (as well as voting for a cut again in November),
- His tone in this speech sounds very similar to Taylor's at the TSC testimony tomorrow. He is in the "case 2" I.e. Gradual camp... But he sees the risks as being much more skewed to case 1 I.e. Requiring faster cuts.
- Key parts of the speech:
- "I think that the MPC’s published forecasts in which growth picks up and inflation rises somewhat above the 2% target for the next two years is plausible. But given the uncertainties I think it is as least as likely that the disinflationary process sustains its recent trend, consistent with more symmetry in wages and price setting, with less domestic inflationary pressure, as described in case 1 which the MPC has considered. This would imply a scenario in which inflation stays closer to the 2% target throughout the first part of the forecast and falls below 2% more materially later on, lower than in the MPC’s published forecasts, where a period of economic slack is required to normalise these dynamics fully."
- ".... Were those uncertainties to diminish and the evidence to point more clearly to further disinflationary pressures, which risked inflation falling below the 2% target on a sustained basis, then I would consider a less gradual approach to reducing Bank Rate to be warranted."
GILTS: Off Lows On Broader Risk-Off, BoE's Ramsden Due Shortly
Nov-20 15:53
The risk-off trade surrounding the Ukrainian launch of Anglo-French missiles into Russian territory means that double bottom support in futures (93.32/33) went untested, as the contract based at 93.37 before recovering to ~93.70 last
- Futures still 48 ticks lower on the day as the feedthrough from this morning’s CPI data lingers.
- Yields flat to 5.5bp higher, curve steeper.
- 5s30s back to ~60bp, ~2bp off November highs.
- 10s ~2bp wider vs. gilts, off session highs, last ~212bp. Cycle closing highs at 215.8bp intact.
- Comments from BoE Deputy Governor Ramsden due shortly.
- He will speak on monetary policy.
- He has previously been a dovish dissenter. We suspect that he sees risks skewed more towards case 1 than case 3 i.e. he still leans dovishly.
- This has the potential to move markets given current STIR pricing.
- ~66bp of cuts priced through ’25 at present (exact pricing run below).
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference vs. Current Effective SONIA Rate (bp) |
Dec-24 | 4.689 | -1.1 |
Feb-25 | 4.520 | -18.0 |
Mar-25 | 4.444 | -25.6 |
May-25 | 4.298 | -40.2 |
Jun-25 | 4.241 | -45.9 |
Aug-25 | 4.154 | -54.6 |
Sep-25 | 4.117 | -58.3 |
Nov-25 | 4.062 | -63.8 |
Dec-25 | 4.041 | -65.9 |
SCHATZ: Block trade
Nov-20 15:45
Schatz Block trade, suggest buyer:
- DUZ4 10.34k at 106.79.
Related bullets
Related by topic
Electricity
Energy Data
Switzerland
European Union
