A Little Lower To Start

The move lower in core global bonds weighs on gilts at the open.

• Futures then stabilise at 99.80 before recovering to 98.90 as broader bonds base.
• Initial support is not seen until the Mar 5 low (98.33).
• Cash gilt yields are flat to 1.5bp higher.
• 10s extend on yesterday’s close above 4.00%, last 4.04%.
• BoE-dated OIS is in line with pre-gilt open levels, 64bp of ’24 cuts priced, first 25bp cut fully discounted come the end of the Aug MPC.
• SONIA futures are little changed to -5.0.
• There is little of note on the UK calendar today, which will leave focus on broader macro news flow and data.
• Friday will see the release of the BoE’s inflation attitudes survey.