A Little Softer On Global Lead

Gilts follow core global peers lower to start the day, with futures last -12 at 97.79 (97.70-84 range thus far).

• Gilt yields are 2.5-3.5bp higher, with the front end leading the sell off.
• Major technical parameters remain untouched, with bulls not able to push futures too far above 98.00 and 10-Year yields operating above 4.00%.
• SONIA futures sit flat to -2.0 through the blues, little changed vs. pre-gilt open levels.
• There is some offset to the bearish pressure from the downtick in the XpertHR data.
• The XpertHR chief told MNI that the data will boost hopes earnings growth will soon moderate to a pace that will make the BoE more comfortable in cutting Bank Rate this year.
• Public finance data (the last such release before the Budget) wasn’t a needle mover, see our earlier bullet for more on that.
• The latest BBG source report has suggested that “Chancellor of the Exchequer Jeremy Hunt is considering plans to spur pension funds to boost investments in UK assets.” This isn’t new news, but interest remains elevated ahead of the budget.
• Looking ahead, the MNI event with BoE dove Dhingra highlights the domestic docket today, with lower tier data (CBI trends) also due.