A Little Firmer To Start, Supply Due Ahead Of Tier 1 Risk Events Later In The Week

Gilts open on the front foot, with core global FI markets above levels seen at yesterday’s gilt close.

• Futures last +14 at 98.55 (range 98.38-56).
• Meaningful resistance doesn’t come in until the Mar 14 high (99.35), which protects key short-term resistance at the Mar 12 high (100.37).
• A reminder that last week’s move lower threatened the overall bullish theme, initial support seen at the Mar 15 low (98.05).
• Cash gilt yields are ~2bp lower across the curve.
• GBP STIR markets are around pre-gilt open levels identified in our earlier bullet.
• UK headline flow has been fairly limited, with some focus on Shadow Chancellor Reeves’ Tuesday address re: economic plans.
• The DMO will auction GBP2bn of the 4.75% Oct-43 gilt later today.
• Tomorrow’s CPI release and Thursday’s BoE decision provide the highlights of this week’s domestic calendar, expect our previews of those events later today.