Short sterling jumps on banking sector woes

Tue, Oct 7 2008, 09:20 GMT
http://www.afxnews.com

LONDON, Oct 7 (Reuters) - Short sterling futures jumped on

Tuesday on as shares in British banks tumbled, while

weaker-than-expected economic data strengthened demands for a

Bank of England rate cut on Thursday.

At 0841 GMT December short sterling was up by 20

ticks to 94.765, while the March contract was up by 27 ticks to

95.780.

"Something to do with RBS share price and the Barclays share

price," one London trader said.

"I think it's entirely down to banking problems and the MPC

are could cut by 50 on Thursday, but I wouldn't be surprised if

there's a suggestion out there they're going to have to cut by

100," the trader added.

British manufacturing output fell for a sixth consecutive

month in August to register its longest losing streak since

1980, data from the Office of National Statistics showed.

* Dec gilt 113.99 (-0.09)

* Dec short sterling 94.785 (+0.220)

* 10-year yield 4.22 percent (UNCH)

--------------------- KEY MARKET DATA---------------------------

Long Gilt futures Gilt benchmark chain

Short Stg futures Cash market quotes

Deposit rates Sterling cross rates

UK debt speedguide Econ. indicator polls

--------------------KEY MARKET REPORTS--------------------------

Gilts Sterling

Euro Debt Dollar

U.S. Treasuries Debt reports

-------------------- GILT STRIPS DATA --------------------------

Gilt strips data All gilt strips

Gilt strips IO Gilt strips PO

A list of all the strippable British gilts

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((UK Economics Desk; uk.economics@reuters.com, +44 20 7542

7715))

(Reporting by Golnar Motevalli; Editing by Andy Bruce)

Keywords: MARKETS BRITAIN GILTS

tf.TFN-Europe_newsdesk@thomson.com

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