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A full recovery for Gilt

BONDS
  • A decent recovery for the Gilt after the future found decent support at the 4.50% mark, which a few desks were targeting of late.
  • Receiving interest and likely some short cover has provided the contract with a 137 ticks range, and now looking to test the immediate resistance at 95.36.
  • Bund is getting dragged higher, but clearly lags somewhat, which has in turn pushed the Gilt/Bund spread 6.4bps tighter and now testing the 190.00bps, after failing to break the 200bps level earlier.

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