HALISTER1: BOE Premium Signals Lack of Gilt Sellers; 10Y Target 0.26%: RBS

BOE Premium Signals Lack of Gilt Sellers; 10Y Target 0.26%: RBS

(Bloomberg) -- BOE had to pay an average premium of 2.2bps into yesterday’s buyback operation in 15Y+ sector, indicative of a lack of appetite to sell, RBS U.K. rates strategist Simon Peck writes in a client note.
  • See further curve flattening as strong performance of long gilts is likely to continue
    • Target 1% on 30Y gilts, see 10Y yield dropping to 0.26%
  • NOTE: RBS had previously targeted 0.50% in 10Y gilt yields
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Simon Peck (Royal Bank of Scotland Group PLC)

To de-activate this alert, click here

UUID: 7947283