FED: US TSY 17W AUCTION: NON-COMP BIDS $562 MLN FROM $72.000 BLN TOTAL

• US TSY 13W AUCTION: NON-COMP BIDS $1.861 BLN FROM $92.000 BLN TOTAL

For the full document including BOE balance sheet tracker, projected gilt market cash flows and issuance calendars / results here.

• After a number of weeks of busy UK events that have included but not been limited to as new Prime Minister, an MPC meeting, and a number of top tier data points, the upcoming week is likely to be more driven by external events (rather than domestic). On the data front the main highlight will be the final PMIs (we received the final manufacturing print this morning).
• Last week saw a more dovish MPC than had broadly been expected with the three swing voters: Lombardelli noting it wasn’t a close decision, Governor Bailey appearing a little further from a hike than previously and Ramsden even mentioning the possibility of a cut in his paragraph. We look at this in more detail in our BOE Review, that was released over the weekend.
• Note also that last week saw the date of the 2026 Budget announced for Wednesday 28 October. We have already had a number of policy announcements from new prime minister, Andy Burnham, and there will be continued focus on fiscal policy going ahead.

• Block, -15,000 FVU6 106.25 puts, 23 vs. 106-07/0.50%
• Additional screen flow includes:
  • 12,000 FVU6 106.5 calls, 15.5 ref 106-07
  • 10,000 TYU6 108 puts, 24 ref 108-05 (total volume just over 23.1k)