Sterling could receive an indirect boost from the U.K. government bond market following the upcoming Bank of England Financial Stability Report, ING's Chris Turner says in a note. "In focus will be whether the BOE removes gilts from its Leverage Exposure Measure, against which banks have to hold 3.25% of Tier 1 capital." This could increase domestic demand for gilts, reduce government borrowing and loosen financial conditions, he says. If delivered, the euro could fall towards 0.8500 pounds, Turner says. The report is due at 0930 GMT. The euro falls 0.1% to a one-year low of 0.8537 pounds, LSEG data show. Gilt yields trade higher, with the 10-year yield up 2.1 basis points at 4.807%, Tradeweb data show. (renae.dyer@wsj.com)
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BOE's Financial Stability Report Could Lift Gilts, Sterling — Market Talk
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Sterling could receive an indirect boost from the U.K. government bond market following the upcoming Bank of England Financial Stability Report, ING's Chris Turner says in a note. "In focus will be whether the BOE removes gilts from its Leverage Exposure Measure, against which banks have to hold 3…