GBP has been outperforming, with EUR-GBP sinking below 0.8500 for the first time in over a month and Cable having earlier logged its highest level since last October (though lower currently following a modest recovery in the USD). Sterling’s relative strength seems somewhat surprising given the uncertainty about the BoE’s decision this week, whether it will expand its quantitative easing program or now. However, a Morgan Stanley research note, cited on Reuters, recommends investors buy Gilts ahead of the MPC decision on Thursday, saying that the eventual end of QE is already priced in. U.K. yields at the 10-year maturity have been generally widening in favor of GBP in recent months. The 10-year Gilt over equivalent Bund spread widened out to the +50bp area in recent sessions having been at minus levels back in March.