Gilt futures opened lower and the December 10-year Gilt contract is currently down 13 ticks to 112.0. Meanwhile, FTSE 100 opened down 0.1%. The 2-year yield is down 3 bp to 4.43% and the 10-year yield is up 2 bp to 4.47%. With petrol prices having come down a bit recently, the expected U.K. CPI rate 12 months ahead might actually have come down from a record high of 4.3% YoY in the May survey. Part of the BoE MPC will appear infront of the Treasury Committee on an hearing on the August Inflation Report, which should get further insight to the central bank's reasoning behind its inflation and growth outlook and possibly give some indication if the MPC is preparing to start loosen monetary policy near-term, as many market players expect.
