Bonds,UK: News Real Time News items

• UK 2019 gilt auction covered 1.89 times - DMOPosted:11/08/2009 11:08 GMT by NeedToKnowNews
  £3.5bln on offer, 3.75% coupon.
  
• Fixed income update: Gilt futures open higherPosted:11/07/2009 18:43 GMT by NeedToKnowNews
  Gilt futures advanced while European stock markets opened marginally lower. At 7:07am GMT, the September 10yr Gilt future was up 23 ticks at 116.27 while the FTSE 100 opened 0.2% lower.
  The 2yr cash yield was down 1bp at 1.40% and the 10yr yield was flat at 3.88%. By comparison the Sept 3mths Short Sterling future was up 0.020 at 98.800 and back months futures were also higher, with the Dec 09 contract up 0.040.
  The domestic agenda has May claimant count, April wage growth, BoE minutes and the BoE's reverse Gilt auction, targeting GBP 3bln bought in 2014-19 maturities.
  
• Fixed income outlook: Gilt futures in focus after choppy sessionPosted:10/07/2009 4:56 GMT by NeedToKnowNews
  Gilt futures could be in for a choppy open after Tuesday's syndicated gilt issue, the first in four years, caused high volatility.
  The syndicated auction of 25-year Gilts prompted sharp movements in both directions for Gilt futures, as an indication of strong demand first pushed futures higher, before downward pressure emerged as markets absorbed the fact that the DMO was selling GBP 7bln in volume, as opposed to the GBP5-3 bln expected.
  The DMO has turned to syndication -- using investment banks to help it sell gilts -- in the face of a massive GBP 220bln issuance this year needed to meet the government's funding needs. Syndication is often also used to place longer-term gilts.
  The DMO aims to sell GBP 25bln of gilts through syndication this year and this first auction proved that there is still healthy demand for UK debt, an important signal after March's failed 2049 auction.
  The DMO said U.K. investors had bought 94% of the 4.5% September 2034 Gilt issuance, with the rest being purchased by foreign investors.
  DMO head Stheeman said that the volume had been increased due to strong demand, and that yesterday's sale had raised twice as much as the DMO could have raised in a conventional Gilt auction.
  
• Fixed income: Gilts follow bunds higher as equities sinkPosted:11/07/2009 0:27 GMT by NeedToKnowNews
  Gilt futures followed Bunds into a stronger open, with equities sinking across Europe after a weak Asian session.
  There is no UK or European data of note to steer sentiment.
  The September 10-year Gilt future was up 73 ticks on the Friday close, marking a five-day high, after Bund futures hit an 11-day peak in early trade.
  The 2-year gilt cash yield was down 6 bps at 1.39% and the 10-year yield off 7 bps at 3.91%.
  
• Fixed income: Gilt futures follow stocks southPosted:12/07/2009 23:32 GMT by NeedToKnowNews
  Gilt futures are sharply lower in early trade, while European stock markets opened lower.
  The September 10-year Gilt future is down 38 ticks at 115.47. The 2-year cash yield is up 4 bp at 1.50% and the 10-year yield is up 3 bp at 3.96%.
  Today's domestic agenda has the Q2 BOE inflation expectations survey, and the DMO auctions GBP0.725 bln in 0.75% inflation linked Gilts, due 2047.
  
• UK DMO chief: BOE QE is unbalancing the gilt marketPosted:10/07/2009 20:43 GMT by NeedToKnowNews
  Robert Stheeman, head of the UK's Debt Management Office, said the Bank of England's programme of gilt purchases is affecting the market and not in a way that benefits the DMO.
  "I'm not totally convinced that what they're doing is of huge benefit to me at the moment," Stheeman told the Observer newspaper.
  "With the advent of QE [quantitative easing], we have had the introduction of a new price incentive - a very large source of demand, which has slightly upset the equilibrium of the market," Stheeman said.
  The DMO is charged with issuing gilts to meet the government's financial needs
  
• UK 2049 gilt auction covered 2.6 timesPosted:10/07/2009 14:06 GMT by NeedToKnowNews
  GBP 2bln on sale; coupon 4.25%
  
• Fixed income update: Gilt futures flat, calendar quietPosted:09/07/2009 10:27 GMT by NeedToKnowNews
  Gilt futures opened slightly up on a weak Friday close after yesterday's UK market holiday, with few fundamentals in view to steer prices.
  Today's domestic agenda is light, with the BOE buying GBP3.5 bln of Gilts in 2020-32 maturities.
  The June 10-year Gilt future was flat at 118.66. The FTSE 100 opened 0.7% lower before paring losses somewhat.
  In the cash market the 2-year gilt yield was down 7 bp at 1.03% and the 10-year yield was down 1 bp at 3.72%.
  
• UK 2014 Gilt auction covered 2.11 times Posted:10/07/2009 14:06 GMT by NeedToKnowNews
  2.25% coupon, GBP 4 bln sold.
• Fixed income update: Gilts open lowerPosted:10/07/2009 2:31 GMT by NeedToKnowNews
  Gilt futures opened lower, in line with Bunds while European stock markets are recording early gains. The 10-year Gilt future is down 9 ticks at 122.53 while the FTSE 100 is up 0.4%. The 2-year cash gilt yield is up 3 bp at 1.37% and the 10-year yield is up 2 bp at 3.28%. Overnight data from the BRC showed U.K. March like-for-like retail sales falling 1.2% y/y, following a 1.8% y/y decline in February, but BRC warned that the timing of Easter and weather conditions make y/y comparison difficult. Later today the DMO auctions GBP4 bln in 2.25% 2014 conventional Gilts. Yesterday saw Gilt futures fall sharply after the BoE's reverse auction targeting Gilts with 5-10 year maturities which was covered 2.29 times, the highest for this particular segment. The large sales of 5% 2014 Gilts in yesterday's reverse auction is likely to be partly associated with some positioning ahead of today's 5yr auction.
• UK index-linked gilt auction covered 2.08 times - DMOPosted:10/07/2009 1:10 GMT by NeedToKnowNews
  On auction were GBP 1.1bln of 2032 gilts.
• UK 2019 gilt auction bid/cover 1.82Posted:10/07/2009 13:58 GMT by NeedToKnowNews
  Coupon 4.5%, volume sold GBP 3bln.
• UK DMO says cover 0.93 for GBP 1.8Bln sale of 4.25% 2049 GiltPosted:11/07/2009 9:23 GMT by NeedToKnowNews
  The cover for the December 2 auction was 2.12.
• UK index-linked 2032 gilt auction covered 2.62 timesPosted:14/07/2009 17:19 GMT by NeedToKnowNews
  GBP1.1bln on sale, coupon 1.25%.
• Ten-yr gilts continue to rally, two-years dip after BOE QE plansPosted:17/07/2009 20:37 GMT by NeedToKnowNews
  Ten-year gilts continued their extraordinary rally from Thursday when the Bank of England announced that gilts, particularly at the long end, would be the focus of its new 'quantitative easing' programme. Two-year gilt prices edged down some 15 ticks, with the yield trading at 1.22%. Analysts said the curve steepening trades have now reversed and are 'in question.'
• Fixed income update: UK 10yr Gilts fall backPosted:09/07/2009 17:25 GMT by NeedToKnowNews
  Ten-year gilts fell back after massive gains yesterday on the back of the BOE's plan to purchase some GBP75bln of gilts with maturities between 5-25 years over the next three months. Yields on the 10yr gilt are up 6bps in morning trade, at 3.35%. Just before noon yesterday, when the BOE announced its plan, yields were around 3.6%; they plunged to around 3.24% in the wake of the news.
• Fixed income update: Gilt future under pressurePosted:17/07/2009 13:58 GMT by NeedToKnowNews
  The gilt future came under intensifying pressure after a poorly received auction of 30yr UK government bonds. GBP2.25 bln was issued in the new action but it attracted a cover of just 1.48 times -- albeit still better than last week's launch of the new 4.0% 2022 Gilt which saw a bid-to-cover ratio of just 1.36. Weak demand for UK debt increases market concerns of how the country's increasing debt issuance will be placed. The June 10-year Gilt future fell to 119.02 following the auction result, from 119.30 just prior, but has since recouped some losses to trade down 72 ticks at 119.21. Strong equities, benefiting from speculation of a new Chinese stimulus package, kept the gilt future lower during the European morning.
• UK Gilt Yields Rise After CPI DataPosted:10/07/2009 14:09 GMT by NeedToKnowNews
  Gilt yields rose after CPI fell more shallowly than expected in January. The 10yr yield rose to 3.48% from about 3.45% when the data were released. The 2yr yield rose to 1.36% from 1.29%.
• UK 2027 Gilt Auction 1.57 Times CoveredPosted:10/07/2009 14:04 GMT by NeedToKnowNews
  Some GBP 1.1bln of index-linked gilts with a coupon of 1.25% were auctioned.
• Update: DMO AuctionPosted:10/07/2009 13:53 GMT by NeedToKnowNews
  The index-linked gilts carry a yield of 1.25%. GBP 1.0bln of gilts were issued.
• UK DMO: 2.38 Cover Ratio in GBP 3.0bln Auction of 2019 GiltsPosted:11/07/2009 18:37 GMT by NeedToKnowNews
  The coupon is 4.5%.
• UK DMO: 'Far Fetched' to Say There is a Funding CrisisPosted:10/07/2009 12:55 GMT by NeedToKnowNews
  The DMO is the UK government office responsible for gilt issuance.
• Fixed Income: Gilts and Equities Open SteadyPosted:17/07/2009 4:51 GMT by NeedToKnowNews
  Gilt futures opened largely flat while, as did FTSE 100. Market players now await this morning's economic releases in the form of German Ifo and British retail sales. Overnight, an interview with BOE's Bean was released, in which the Deputy Governor discusses both the possibility of the repo rate approaching zero, as well as possible quantitative easing. The March 10-year Gilt future is up 3 ticks at 121.65 and FTSE 100 opened 0.1% higher. The 2-year cash yield is down 1 bp at 1.38% and the 10-year yield is down 1 bp at 3.22%.
• UK GBP 250 mln Gilt Auction Covered 1.62 TimesPosted:11/07/2009 3:20 GMT by NeedToKnowNews
  The UK Debt Management Office's auction of GBP 250 million of index-linked gilts was covered by bids 1.62 times. The gilts carry a coupon of 1.25%, indexed to RPI inflation, and mature in 2055.
• UK DMO Bid-to-Cover 1.37 on GBP 2.25bln 2030 Gilt AuctionPosted:10/07/2009 13:12 GMT by NeedToKnowNews
  Coupon 4.75%
• UK DMO Auction of 2018 Gilts Covered 2.01 TimesPosted:16/07/2009 17:19 GMT by NeedToKnowNews
  The aution was for GBP 3bln of gilts carrying a coupon of 5%.