BoE Offers $40B Overnight Repo, Sterling Holds Gains
The BoE's will offer another USD 40B in overnight repo today. Yesterday's USD 40B auction was covered 0.65 times, with the lowest acceptable bid rate at 0.01% and a weighted average rate of accepted bids of 2.056%. Only USD 26.15B was hence allocated and the bid spread was very wide, with strategists speculating that many "cheeky bids" were placed. In the initial USD 40B auction last Thursday, a mere 0.35 times bid to cover ratio was reached. Meanwhile, after peaking to 1.8640 yesterday, the pound-dollar (GBPUSD) has gave back some of its gains, but continues to hold above 1.8500 for the time being.