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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GILTS
- Gilt futures have continued their march higher today, and in line with Bund futures have broken above yesterday's highs. In fact gilt futures have moved to their highest levels since the Easter break.
- Looking at the curve over time (below) it can be clearly seen that yields are now between 20-30bp below their cycle peaks (reached post-Mann for shorter tenors and after the Easter break for the long end.
- Despite this, markets still price in 29bp for the May MPC meeting, 59bp by June (2 meetings), 92bp by August (3 meetings) and 146bp by year-end (6 meetings).
- 146bp priced for this year is similar to the pre-Easter level (but over 25bp below the Mann-induced peak seen late last week).
- This morning the gilt remit was revised higher (but not enough to really have a large market impact) and next week's MPC meeting (and also next week's Fed meeting) are the next big events for the gilt market.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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