UK press headlines have dubbed Governor Bailey ‘unreliable boyfriend number two’ after the initial moniker was applied to his predecessor Carney in 2014. 2 decision, sharply surprising markets which had fully priced a 15bp rate hike at the November meeting after having been walking up the hill by Governor Bailey and Chief Economist Pill since October.
The BoE MPC held rates unchanged in a 7 vs. The USD rose with the broad BBDXY +0.4%.įirst to the BoE which shocked markets overnight with its thunderous silence. Other FX pairs with well-priced hike expectations also fell with AUD -0.6%, along with NZD (-0.8%) and USD/CAD +0.5%. In FX, GBP was unsurprisingly the global underperformer, plummeting 1.2%. Curves flattened with the US 2s10s curve down -2.3bps to 110.49bps with the 2yr yield down by less. Real yields bore the brunt of the move with the 10yr TIP yield -9.1bps to -1.05%, while the implied inflation breakeven was little changed at 2.57%. Those moves were echoed globally with the US 10r yield -8.8bps to 1.52% and the implied yield on the Aussie 10yr bond future is -9.0bps. UK yields tumbled with 10yr Gilt yields -13.7bps to 0.93%. Unreliable boyfriend number two shocked global rates markets overnight with the BoE keeping rates unchanged after Governor Bailey and Chief Economist Pill had walked markets up the rate hike hill (the decision was 7 v 2 with Ramsden and Saunders dissenting). “’Cause you’re hot then you’re cold You’re yes then you’re no You’re in then you’re out You’re up then you’re down You’re wrong when it’s right It’s black and it’s white We fight, we break up”, Katy Perry 2008 Coming up today: RBA SoMP, Canada Employment, US Payrolls,.Oil falls despite OPEC sticking its current plan, re-buffing US calls for more (Brent -1.5% to 80.76).GBP plummets (-1.4%), other pairs with well-priced hike expectations fall (NZD -0.8% AUD -0.6%).Global yields tumble in reaction (UK 10yr -13.7bps to 0.93% US 10yr -8.8bps to 1.52%).BoE holds, sharply surprising markets after Governor Bailey had walked markets up the hill.
0 kommentar(er)
