This week's data is proof that the hawks in the Monetary Policy Committee are wrong, giving gilts support this week.
With demand still weak, there's room to cut rates in the first half of next year. That'll keep yields around 4 percent for 10-year gilts.
Strip out higher oil prices, and Europe doesn't have an inflation problem. We're still bullish for the medium term.
By stepping outside the majority view, he undermines his own credibility. He just becomes another member on the committee.
The U.S. economy is still very strong and that's not helping worries about inflation. Until there's some indication the Fed will stop, 10-year yields will be forced upwards.
Demand is vastly outstripping supply. It's not surprising that some of the dealers are going to the DMO because it's difficult to make a market in these conditions.
U.K. data has been weaker than expected, but investors don't believe this will be enough to persuade the bank to cut rates. This leaves gilts vulnerable.
The European Central Bank will raise rates by a quarter- point per quarter. The market probably has more to do in terms of discounting that.
Given the uncertainty of the effect the hurricane may have on the economy, the Fed may take a pause in raising interest rates.
We believe the Monetary Policy Committee will be forced to make two more cuts in November and February.
