A Little Cheaper To Start

Gilts eye moves in Bunds at the re-open, ticking lower before stabilising, leaving the contract -10.

• Cash gilts are 1-2bp cheaper across the curve.
• 2s10s sit at -34bp, just off the recently seen multi-month highs. 5s30s are just off multi-month steeps, printing at +43bp.
• Domestic headline flow has been fairly limited since yesterday’s close.
• A resounding win for Labour in a Scottish by-election has provided the most meaningful news flow, although that won’t have been a market mover.
• Elsewhere, the Halifax house price index revealed continued headwinds for the housing market, although worries re: that space are well-documented.
• SONIA futures are flat to 2.5bp softer.
• BoE-dated OIS are flat to 2bp higher.
• The local docket is essentially empty ahead of the weekend, with the monthly U.S. NFP release dominating the global macro docket.