FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The UK gilts traded nearly flat Wednesday, succumbing to thin trading activity during a relatively quiet session that witnessed data of little significance. Also, investors did not react to the dovish remarks from Bank of England's Deputy Governor Minouche Shafik.
The yield on the benchmark 10-year gilts, which moves inversely to its price, hovered around 0.68 percent mark, the super-long 40-year bond yield remained steady at 1.264 percent and the yield on short-term 2-year bond stood flat at 0.088 percent by 09:40 GMT.
Bank of England Deputy Governor Shafik said that more easing is likely needed at some point, with the timing depending on the economy. She said Brexit is a 'sizeable economic shock' for the UK and the GBP decline is helping UK economy find a new equilibrium. The BoE is uncertain on QE's economic impact and side effects. She notes that recent forward-looking indicators suggest the economic slowdown may not be as sharp or sudden as feared following the June referendum. Whether the MPC decides to cut the Bank rate by a final 15 basis points (to 0.10 percent) in November, but recent data suggest it is not necessary.
Further, BoE's Shafik added that forward-looking indicators are still 'quite worrying' and policy action in November will depend on the data. Fiscal policy is also important for monetary policy; it's too early to say if the Treasury's response to Brexit is enough. She said would rather policy be on the 'front foot' and act pre-emptively, but prefers other policy tools to negative rates. Said BoE has no plan on how to phase out QE and sees UK inflation close to 1 percent by year-end.
Lastly, investors remained keen to focus on the series of upcoming economic data, highlighted by HPI, business investment and Q2 GDP data.
Meanwhile, the FTSE 100 traded 0.64 percent higher at 6,850.70 by 09:40 GMT.
