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A Little Softer On Day, Fiscal Discussions Still Dominate

GILTS

Nothing to detach gilts from wider price action in core global FI markets over the last couple of hours.

  • That leaves the space closer to session lows than session highs.
  • Futures hold to a contained 97.92-98.43 range after Friday’s high capped early rallies.
  • Contract last -31 at 98.01, previously covered bearish technical picture remains intact.
  • Cash gilt yields 2-3bp higher, light bear flattening of curve.
  • Fiscal matters dominate local discussions. Expect our full Budget preview tomorrow, ahead of Wednesday’s event.
  • Expectations are for slightly more fiscal easing than a week or so ago (back towards expectations flagged earlier in Feb), although fiscal headroom is still seen as somewhat limited.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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