The big BoE easing: UK DMO a winner but arb hunters lose out

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The big BoE easing: UK DMO a winner but arb hunters lose out

Carney Sep 14 230x150

A bigger than expected push towards monetary easing by the Bank of England on Thursday sent Gilt yields to new record lows, but unfavourable basis swap rates and a rampant dollar market means an uptick in arbitrage funding in sterling by public sector borrowers is unlikely, said bankers.

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