UK leads the way

UK leads the way

Lower debt issuance in the UK appears to have set off some kind of short squeeze. UK 30s are now down 15.5 bps to 1.163%. Gilt yields are also down 11 bps and through the key 1% level.

The move is spreading globally to a lesser extent and bears very close watching.

The move in UK yields isn't having much of an effect on GBP but the sands are shifting. Also note that there is a US 5-year auction today.