The post Gilts underperforming ahead of CPI – ING appeared on BitcoinEthereumNews.com. Gilts had a poor session yesterday, underperforming Bunds by 5bp on the 10-year, ING’s FX analyst Francesco Pesole notes. EUR/GBP has found some support “The yield on 30-year inflation-linked bonds reached its highest level since 1998 – surpassing the Liz Truss crisis. Some additional pressure on gilts may be coming from the UK’s Debt Management Office announcing syndicated offerings in October and November, and/or some positioning ahead of Friday’s UK sovereign rating review by Fitch.” “Either way, the pound followed bonds lower yesterday, and EUR/GBP has found some support. Tomorrow’s CPI release (0700 BST) is a key event for sterling. We expect both headline and services inflation to accelerate, to 3.7% and 4.8%, respectively.” “That should consolidate markets’ recent hawkish repricing in the Sonia curve. Bets on another cut by year-end briefly dropped below 50% yesterday – currently at 14bp. We see upside risks for the pound ahead of tomorrow’s release and a break below 0.860 as increasingly possible.” Source: https://www.fxstreet.com/news/gbp-gilts-underperforming-ahead-of-cpi-ing-202508190824The post Gilts underperforming ahead of CPI – ING appeared on BitcoinEthereumNews.com. Gilts had a poor session yesterday, underperforming Bunds by 5bp on the 10-year, ING’s FX analyst Francesco Pesole notes. EUR/GBP has found some support “The yield on 30-year inflation-linked bonds reached its highest level since 1998 – surpassing the Liz Truss crisis. Some additional pressure on gilts may be coming from the UK’s Debt Management Office announcing syndicated offerings in October and November, and/or some positioning ahead of Friday’s UK sovereign rating review by Fitch.” “Either way, the pound followed bonds lower yesterday, and EUR/GBP has found some support. Tomorrow’s CPI release (0700 BST) is a key event for sterling. We expect both headline and services inflation to accelerate, to 3.7% and 4.8%, respectively.” “That should consolidate markets’ recent hawkish repricing in the Sonia curve. Bets on another cut by year-end briefly dropped below 50% yesterday – currently at 14bp. We see upside risks for the pound ahead of tomorrow’s release and a break below 0.860 as increasingly possible.” Source: https://www.fxstreet.com/news/gbp-gilts-underperforming-ahead-of-cpi-ing-202508190824

Gilts underperforming ahead of CPI – ING

2025/08/20 02:28
1 min di lettura
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Gilts had a poor session yesterday, underperforming Bunds by 5bp on the 10-year, ING’s FX analyst Francesco Pesole notes.

EUR/GBP has found some support

“The yield on 30-year inflation-linked bonds reached its highest level since 1998 – surpassing the Liz Truss crisis. Some additional pressure on gilts may be coming from the UK’s Debt Management Office announcing syndicated offerings in October and November, and/or some positioning ahead of Friday’s UK sovereign rating review by Fitch.”

“Either way, the pound followed bonds lower yesterday, and EUR/GBP has found some support. Tomorrow’s CPI release (0700 BST) is a key event for sterling. We expect both headline and services inflation to accelerate, to 3.7% and 4.8%, respectively.”

“That should consolidate markets’ recent hawkish repricing in the Sonia curve. Bets on another cut by year-end briefly dropped below 50% yesterday – currently at 14bp. We see upside risks for the pound ahead of tomorrow’s release and a break below 0.860 as increasingly possible.”

Source: https://www.fxstreet.com/news/gbp-gilts-underperforming-ahead-of-cpi-ing-202508190824

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