A Little Softer, BoE's Mann Due Shortly

Spill over pressure from ECB-speak applies some light pressure to gilts early today, leaving futures -38 at 98.25, at the base of a 22-tick range.

• Key support is some distance away at the May 14 low (97.23), while initial resistance seen at yesterday’s high (98.76).
• Cash gilt yields are 1-2bp higher, curve sees some light bear flattening.
• SONIA futures last flat to -4.5, while BoE-dated shows ~57bp of easing through year end, roughly in line with pre-gilt open levels.
• Reports have suggested that Chancellor Hunt will point to the Conservative Party’s focus on further tax cuts if they retain power following the next election, as they continue to struggle in the polls.
• Comments from BoE’s Mann are due shortly (09:00 London).
• She will give the keynote speech at Economics Statistics Centre of Excellence Conference.
• Her speech will be entitled Economic Measurement 2024 ‘cost of capital: measurement and implications for business investment’.
• Mann may not say anything of note on monetary policy in her prepared remarks, but the Q&A may give her a chance to communicate any updates in her views.