EUROPEAN FIXED INCOME UPDATE: Gilts slammed again, and peers slide in sympathy

Analysis details (11:07)

UK debt has been decimated in wake of the so called mini budget that exceeded even expectations in terms of cost and funding considerations and has also resulted in a sharp spike in BoE rate hike premium. In short, the DMO is now looking at increased issuance to cover the initial 6 month Gbp 60 bn financial burden and could be faced with a bigger remit down the road. Looking at price moves in more detail, the 10 year bond paused around the century mark for a while before slumping to 99.86 for a massive 322 tick loss on the day and an even more whopping/eye-watering 666 tick dump from fleeting post-BoE peaks just yesterday. Elsewhere, spill-over selling in Bunds and US Treasuries dragged the former down to 139.17 from 140.99 at best in wake of the EZ PMIs (vs a 140.02 prior Eurex close) and the T-note to 112-05 from 112-30+ at one stage before some short covering.  

23 Sep 2022 - 11:07- Research Sheet- Source: Newsquawk