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A Little Softer To Start, Supply & Final Services PMI Due

GILTS
Bank Of England (BOE) Market NewsHomepageBond Market NewsBulletMarketsFixed Income Bullets

Gilts move lower in early trade, with core global FI markets on the defensive as U.S. & German benchmarks respect recent yield lows.

  • Futures trade as low 97.35, with initial support seen at yesterday’s base (97.08).
  • The recent run higher in the contract is considered corrective at this stage.
  • Yields are ~3bp higher across the curve.
  • SONIA futures are 0.25-2.5 lower through the blues coming under very modest pressure alongside gilts, although ranges remain tight and volumes light.
  • BoE-dated OIS sees similar, modest moves, with ~35bp of cuts showing through year end.
  • Local headline flow continues to focus on political matters, with the initial Sunak-Starmer televised debate revealing little new and the Tories still trailing by a very wide margin in the polls.
  • Final services PMI data headlines the UK calendar today, which should leave focus on wider headline flow & spill over from U.S. data.
  • On the supply front, GBP4.0bn of Mar-27 gilt supply is due.
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Gilts move lower in early trade, with core global FI markets on the defensive as U.S. & German benchmarks respect recent yield lows.

  • Futures trade as low 97.35, with initial support seen at yesterday’s base (97.08).
  • The recent run higher in the contract is considered corrective at this stage.
  • Yields are ~3bp higher across the curve.
  • SONIA futures are 0.25-2.5 lower through the blues coming under very modest pressure alongside gilts, although ranges remain tight and volumes light.
  • BoE-dated OIS sees similar, modest moves, with ~35bp of cuts showing through year end.
  • Local headline flow continues to focus on political matters, with the initial Sunak-Starmer televised debate revealing little new and the Tories still trailing by a very wide margin in the polls.
  • Final services PMI data headlines the UK calendar today, which should leave focus on wider headline flow & spill over from U.S. data.
  • On the supply front, GBP4.0bn of Mar-27 gilt supply is due.