Sterling markets are reacting to US dynamics and concerns about Bank of England’s easing path. A cut by the BoE is expected, but comments about quantitative tightening are more interesting. UK inflation dynamics suggest a less dovish view. The US 10yr auction tailed again, with lower direct bidding and increased dealer participation. The 30yr auction is next. Despite rate-cut talk, appetite for yields at current levels is in question. The 10yr Treasury yield may actually be lower due to swap spreads. ING’s publication is for information purposes only and not investment advice.

Read more at Investing.com: Bank of England’s QT Tweaks Can’t Solve Structural Problems