April 23, 2024 11:42 GMT
5s Lead Sell Off Post-Pill
GILTS
Fresh session lows for gilt futures post-Pill, although lows of recent sessions have not been tested.
- The bearish technical backdrop for futures remains intact, with Friday’s low (96.45) providing initial support.
- The previously detailed hawkish reaction in STIRs allows 5s to lead the sell off on the day, with benchmark gilt yields now 3.5-6.5bp higher.
- 5s30s is ~3bp flatter on the day, but well within recent ranges.
- A reminder that the details of the upsized gilt remit promoted bear flattening earlier in the day.
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