Inflation knocks shine off sterling SSA market

sterling fotolia 230x150
By Lewis McLellan
23 Mar 2017

A higher than expected UK inflation rate led to a sell-off in Gilts this week, a move that may put an end to what has been a remarkable run of traffic in sterling SSA bond issuance.

European public sector borrowers were attracted to the sterling market by unusually wide swap spreads, which provided good arbitrage for issuers swapping the proceeds into euros or dollars.

But when the consumer price index in the UK hit 2.3% on Tuesday — considerably higher than the 2.1% forecast ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.