UPDATE: Big bounce in bonds as BoE intervenes to redress repricing

Analysis details (11:13)

Gilts have spiked on the back of BoE intervention in the form of a temporary QE remit targeting longer dated debt with immediate effect to restore orderly conditions to a market that has been repricing more significantly of late. The 10 year bond reached 95.60 from a 90.99 low with some interim support from the fact that 2053 green bond issuance went down well with investors regardless of all the financing fears that have rattled UK assets since widespread tax cut proposals were announced. Meanwhile, Bunds slumped to yet another low, at 135.52 and the T-note remained bunkered until a pronounced rebound to top the earlier overnight peak ahead of US data, more Fed speak and the final leg of this week’s weak-to-date Treasury auction remit (Usd 36 bn 7 year supply that could buck the trend given historical popularity with the overseas investment community).

28 Sep 2022 - 11:13- Research Sheet- Source: Newsquawk