Inflation knocks shine off sterling SSA market
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 ...
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