Sterling/Gilt allies today

[arabianights]

The magnitude of the move makes no sense to me. I am aware of the given justifications but does anyone want to defend this?

 

[fibonelli]

The magnitude of the move makes no sense to me. I am aware of the given justifications but does anyone want to defend this?

Front running quantative easing?

If so, same happened in the US T-Bond market last month. Classic pump and dump.

 

[arabianights]

well I assumed that was it, I just figured this sort of thing ought to have been priced in already!

Has me scratching my head anyway

 

[Martinghoul]

Merv was SUPER SUPER SUPER dovish, as well as an explicit reference to QE.

I am hearing this will be the largest close-to-close move in the gilt contract in over a decade (barring CTD changes and adjusted for roll).

 

[arabianights]

honestly it didn't seem especially dovish to me in comparison to what has been said before... but I seem to be living on a different planet to everyone else from the looks of things!

 

[gooseman]

think what the sentiment was before he started speaking. given the last set of miinutes and the 50 bp move the market was beginning to think that they had maybe done enough on the rates side and were going to do QE. In the US bond market they have been effectively darig the Fed to go ahead with promises of buying t's by selling them off, playing cat and mouse and gilt effectively followed.

so on merv saying we will cut more nad we will be undertaking QE as early as next week that sent sterling flying and more so longer dated debt, i.e. gilts.

 

[tripleogstar]

I think there will be a small short term move back towards 120 or 119. I have a short position in place. Overall trend for gilts is upwards. BoE buying up gilts, gud enough reason for gilts to fly