A Little Softer On The Day, Global Moves Eyed

Gilts have been happy to look to the weakness in core global FI peers given the lack of meaningful domestic markets drivers.

• That leaves futures -15 or so, comfortably within the confines of yesterday’s range.
• Cash gilts are 1.5-3.5bp cheaper across the curve.
• A resounding victory in a Scottish by-election has tilted betting market odds re: the next general election even more in favour of a Labour victory but hasn’t been a meaningful market mover.
• Elsewhere, the Halifax house price index flagged continued pressure for the domestic housing market. Still, the details of the release focused on areas of well-documented risk/worry.
• SONIA futures are flat to -4.5, while BoE-dated OIS is little changed to 3bp firmer.
• A reminder that the local docket is now essentially empty ahead of the weekend, with more focus set to fall on offshore matters, namely the spill over surrounding the U.S. NFP report.