A Little Softer After Early Rally Fades, Syndication Eyed

Gilt futures are now lower on the day, with wider core global FI also off session highs.

• The launch of the New 1.25% Nov-54 I/L gilt will be adding some weight.
• Futures last -19 at 99.61 (range 99.60-100.08).
• Monday’s low (99.37) provides intermediate support, with the bullish technical move stalling a little.
• Cash gilt yields are 0.5-2.0bp higher.
• Macro headline flow has been light since the early ECB speak.
• Largely in line domestic economic activity data didn’t impact markets.
• Yesterday’s labour market data was always going to be more important for markets and BoE policy.
• ~70bp of BoE cuts are priced through year end.
• SONIA futures are -1.5 to +1.5, off early highs alongside gilts.