Three consecutive US auctions have ended with 2bp tail on the 30yr, indicating the curve should be higher and steeper. A hawkish cut by the Bank of England underscores the need for sterling rates to not follow the dovish US trend. Slowing quantitative tightening may not alleviate the pressure on record 30Y gilt yields. The 30yr auction in the US saw yields and SOFR rates rise, signaling an absolute rates issue rather than a credit problem. The BoE’s decision to potentially slow the pace of QT may ease upward pressure on gilt yields, but global factors remain a key driver. Friday’s events are quiet, with no major data releases or bond issuances planned.

Read more at Investing.com: A Triple Tail in the US: Bond Auctions Flash Curve Warning