MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

A Little Softer To Start A Risk-Heavy Week

GILTS
Bank Of England (BOE) Market NewsHomepageBond Market NewsBulletMarketsFixed Income Bullets
  1. Gilt futures sit a little above session lows, coming under some modest pressure to start the week, but generally sticking within the upper half of Friday’s range.
  • The contract last prints -21 at 98.66.
  • Bulls are in control from a technical standpoint.
  • They look for a break of Friday’s high (99.05) to further cement recent gains.
  • Initial firm support is seen at the 20-day EMA, with the June 4 high (97.86) providing some intermediate protection.
  • Gilt yields are flat to 2bp higher on the day, with a light steepening bias.
  • 2s10s edges back towards recent highs.
  • J.P.Morgan have recommend fading the recent curve steepening via tactical 10s/30s flatteners. They point to light long end supply in the coming months, as well as their expectations for GBP STIRs.
  • Broader market cues are in the driving seat today.
  • Polling woes for PM Sunak and the conservative Party remain apparent, dominating UK news wires.
  • SONIA futures are +0.5 to -1.5 through the blues.
  • BoE-dated OIS prints little changed across ’24 contracts, with 80% odds of a 25bp cut priced through the Sep MPC and ~43bp of cuts showing through year end.
  • The latest CPI data (Wednesday) and BoE decision (Thursday) headline this week’s local calendar.
  • The BoE will sell GBP600mn of long dated gilts from its APF later today.
216 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  1. Gilt futures sit a little above session lows, coming under some modest pressure to start the week, but generally sticking within the upper half of Friday’s range.
  • The contract last prints -21 at 98.66.
  • Bulls are in control from a technical standpoint.
  • They look for a break of Friday’s high (99.05) to further cement recent gains.
  • Initial firm support is seen at the 20-day EMA, with the June 4 high (97.86) providing some intermediate protection.
  • Gilt yields are flat to 2bp higher on the day, with a light steepening bias.
  • 2s10s edges back towards recent highs.
  • J.P.Morgan have recommend fading the recent curve steepening via tactical 10s/30s flatteners. They point to light long end supply in the coming months, as well as their expectations for GBP STIRs.
  • Broader market cues are in the driving seat today.
  • Polling woes for PM Sunak and the conservative Party remain apparent, dominating UK news wires.
  • SONIA futures are +0.5 to -1.5 through the blues.
  • BoE-dated OIS prints little changed across ’24 contracts, with 80% odds of a 25bp cut priced through the Sep MPC and ~43bp of cuts showing through year end.
  • The latest CPI data (Wednesday) and BoE decision (Thursday) headline this week’s local calendar.
  • The BoE will sell GBP600mn of long dated gilts from its APF later today.