Central Banks on the move!

There was a Gilts sell off after the BoE announcement and the pressure on wider markets intensified after the decision, which showed 3 MPC members voting for a 50 bp hike. Markets were already spooked by the unexpected 50 bp move from the SNB this morning and 10-year rates are now up 24.1 bp in Switzerland, 24.5 bp in Germany and 22.4 bp in the UK.

The UK rate has jumped 19.4 bp to 3.477% now. Eurozone peripherals are outperforming, suggesting that the ECB’s signal on a new crisis tool to keep a lid on spreads is helping – at least for now. Stock markets are selling off in this environment, with the GER40 down -2.9%, the UK100 -2.6% and US futures also sharply lower led by a -2.9% correction in the USA100.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.